Better sues former CEO as battle over board turns ugly

Better Home & Finance has sued founder and former CEO Vishal Garg, escalating a rapidly deteriorating dispute over control of the mortgage company less than three weeks after his departure as chief executive. The lawsuit, filed Tuesday in federal court in New York, accuses Garg of violating federal securities laws as part of an effort to replace five directors and return to a leadership role at the company he founded. The legal fight marked a major escalation in a dispute that has grown increasingly hostile since Better announced Garg’s departure Aug. 3. In that initial announcement, the company said Garg and the board had “mutually agreed” for him to transition out of the CEO role, with Daniel Lewis taking over on an interim basis. But after Garg began publicly pushing to return to company leadership, Better abandoned that framing. In an Aug. 14 statement, the company said the board, excluding Garg, had unanimously voted to terminate him as CEO and accused him of trying to regain control of the company. Better also alleged that Garg delayed the company’s quarterly filing by refusing to sign required representation letters in a timely manner. Better escalated its criticism agai...