Better.com, CEO misled traders to crack SPAC deal, alleges former worker

A former worker of Better.com has alleged that Better.com and its CEO have offered deceptive info to traders to make sure SPAC deal.

Vishal Garg. (Photo: Better.com)

A former Better.com worker is suing the corporate and its chief government, Vishal Garg, alleging they offered deceptive statements to traders concerning the digital mortgage agency’s monetary prospects and efficiency.

Sarah Pierce, a former government vice-president for gross sales and operations on the SoftBank-backed firm, claimed in her lawsuit that Garg misrepresented Better.com’s statements to make sure traders undergo with a SPAC merger as an alternative of withdrawing on account of its monetary situation.

A Better.com lawyer mentioned the claims had been “without merit”.

Also learn: Better.com CEO Vishal Garg who fired 900 workers over Zoom name returns after month-long break

SoftBank didn’t instantly reply to a Reuters request for remark.

Better.com’s plan to go public by a merger with a special-purpose acquisition firm (SPAC) Aurora Acquisition Corp, in a deal that valued it at $7.7 billion, was agreed to final yr and has but to shut.

SPAC offers had been among the many hottest funding traits throughout the pandemic as early-stage corporations appeared to go public.

Pierce mentioned within the lawsuit, filed on Tuesday in a US district court docket southern district of New York, that she was pushed out of her position in February in retaliation for elevating issues concerning the deal. She is searching for monetary compensation.

“We have reviewed the claims in the complaint and strongly believe them to be without merit,” a lawyer for Better.com mentioned in an emailed assertion to Reuters. “The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit,” the lawyer added.

Founded in 2016 and headquartered in New York, Better.com gives mortgage and insurance coverage merchandise to owners by its on-line platform.

Last yr, Garg needed to apologise for his method of dealing with layoffs after a video of him firing 900 workers over a Zoom name went viral on social media.