Vishal Garg, founder and former CEO of tech-focused mortgage disruptor Better, briefly was the “main character” of the industry back in 2021—and not in a good way. His casual, chaotic Zoom firing of 900 people right before the Christmas holiday went viral, picked up by mainstream media as an example of pandemic-era callousness from the leader of a multi-billion-dollar company.
Today, Garg is back in the spotlight. After a brief leave of absence following that initial controversy (which he expressed remorse for), Garg returned to Better, but was ousted by the board last week with the company’s stock down over 90% from its peak (and 60% this year).
That has sparked a back-and-forth battle playing out very publicly, with Garg claiming he was about to finish turning the company around and alleging he has enough support to remove the board members who fired him, hiring a high-profile lawyer and demanding his job back.
In a release yesterday, Better called on Garg to “end his disruptive campaign” and “allow the company to move forward.
“Mr. Garg is now waging a costly and distracting campaign to replace the Board, reverse its decision and return himself to an executive role at the Company. The Company calls on Mr. Garg to end his revenge campaign,” Better wrote.
In various social media posts and media appearances over the last week or so, Garg accused the board and newly appointed interim CEO Daniel Lewis (a hedge fund manager who only joined Better’s board in late July) of deceiving him and staging its own coup. He offered to work for $1 a year, and claimed that stockholders support his return bid—something Better disputed.
“Mr. Garg has aggressively solicited shareholders in an effort to secure their support and has done so by misrepresenting facts and in a manner that clearly violates federal securities laws,” the company said in its release. “Despite this improper and unlawful solicitation, Mr. Garg does not have the votes required to implement his boardroom coup.”
Speaking to CNN, Garg said his effort is “about delivering savings to people and helping them live the American Dream,” citing his previous voluntary step-back after the Zoom firing debacle.
The fight comes as mortgage lenders face a similar landscape to real estate brokerages, with little immediate sign of an uptick and relatively low levels of refinance activity—where Better initially built its business (though there have been some recent signs of life in that sector).
Garg told CNN that Better “tripled” its loan volume and was “at the five-yard line” in a multi-year turnaround effort.
But Better appears unmoved, and even highlighted previous alleged misconduct by Garg in previous roles.
“The duly elected Board carefully considered Mr. Garg’s performance and conduct and concluded that he is unfit to be the leader for Better. No media tour or attacks on Better, its employees or its directors can change that independent judgment,” Better wrote.
