Better rolls out a poison pill as Garg fights for control

In a defensive move, Better Home & Finance Holding Co. has adopted a poison pill aimed at preventing former CEO Vishal Garg and a group of investors from taking control of the company without paying a premium or fully disclosing their plans. The limited-duration shareholder rights plan, announced Thursday, intensifies a fast-developing fight for leadership of the AI-focused mortgage lender. On Tuesday, Better sued Garg in federal court, accusing him of violating U.S. securities laws through what the board called an “illegal, scorched-earth campaign” to replace directors and reinstall himself as CEO.A spokesperson for Garg did not immediately reply to HousingWire‘s request for comments. The rights plan makes Garg’s takeover attempt much harder by providing that if any person or group becomes the beneficial owner of 15% or more of any class of Better’s common stock — or 15% or more of the company’s total voting power — the remaining shareholders can buy additional Better shares at a substantial discount, diluting the acquiring party’s stake. Better will distribute one Class A right for each share of Class A common stock, one Class B right for each share of Class B common stock an...