The bitter power struggle at online mortgage lender Better.com has escalated into open federal litigation, with founder Vishal Garg winning an early round in his fight to reclaim control of the company he built.
Garg was removed as chief executive on August 3, with board director Daniel Lewis installed as interim chief executive just a week after joining the board himself. Since then, Garg has argued he retains majority support among shareholders and has pushed for the resignation of the current board along with a 30 million dollar stock buyback as part of his effort to return to the company's helm.
A Judge Sides With the Ousted Founder
Better responded by suing Garg in federal court, accusing him of violating securities law by organizing shareholders in support of his return without making the disclosures the company argued were legally required. A federal judge rejected the company's request to halt Garg's shareholder campaign, ruling that Better had failed to show it would suffer irreparable harm if the effort were allowed to continue. The decision clears the way, at least for now, for Garg to keep pressing his case directly to shareholders while the underlying legal dispute plays out.
The fight has grown increasingly personal, with private messages between board members and other communications surfacing publicly as both sides work to shape the narrative around Garg's removal and the company's performance under his leadership.
A Turnaround Complicates the Board's Case
Garg's allies point to the company's financial trajectory as evidence that his removal was unwarranted. In the two years before his ouster, Better's revenue grew roughly two and a half times over, contribution margin improved by a factor of four, and the company diversified well beyond its original business as a direct to consumer mortgage originator. Its Tinman artificial intelligence platform now accounts for more than 60 percent of revenue, a shift Garg has cited as proof that his strategy was working before the board moved against him.
With a judge already skeptical of the board's request for emergency relief, the standoff appears likely to continue playing out both in court and in the court of shareholder opinion, as Better's ownership decides whether Garg or the current board deserves control of the company going forward.
