Vishal Garg takes Better to court over ‘poison pill’

Founder Vishal Garg has sued Better Home & Finance Holding Co., interim CEO Daniel Lewis and six fellow board members, alleging they illegally entrenched themselves after ousting him as CEO. The complaint, filed in the Delaware Court of Chancery on Tuesday, brings three counts — breach of fiduciary duty and two claims for declaratory judgment — and asks the court to invalidate the board’s so-called poison pill and special committee formation. Garg argues these moves were adopted as a pretext to thwart shareholders’ voting rights. A spokesperson for Better did not immediately reply to HousingWire‘s request for comment. Garg alleges that “through lies and manipulation,” activist hedge fund manager Lewis, founder of Orange Capital, “maneuvered his way” onto Better’s board on July 27, then convinced the board to terminate Garg as CEO without notice or cause on Aug. 3. According to the complaint, Better’s stock is down nearly 60% since Garg’s ouster, with large stockholders rebelling against the board’s actions and demanding his return. Lewis, meanwhile, “was vacationing in Provence, France,” the complaint states. The suit claims the company offered Garg a position as vice chairman ...