Vishal Garg, Better.com CEO Who Fired 900 Employees On Zoom, Sued For ‘Misleading’ Investors
Vishal Garg, the chief executive officer (CEO) of Better.com who fired 900 employees on a Zoom call, is in the news once again as he has been sued by a former employee of the company, who alleged that he provided misleading statements to investors about the digital mortgage firm’s financial prospects and performance.Sarah Pierce, a former executive vice-president for sales and operations at the SoftBank-backed company, has also filed a lawsuit against Garg in this regardPierce claimed Garg misrepresented Better.com’s statements to ensure investors go through with a SPAC (special-purpose acquisition company) merger instead of withdrawing due to its financial condition.She also mentioned that she was pushed out of her role in February in retaliation for raising concerns about the deal. She is seeking financial compensation.In her complaint, she said Garg misrepresented the company’s prospects to investors and directors and told them that the firm would return to profitability in the first quarter of 2022 despite Pierce and other senior leaders explicitly stating that this outcome was not possible.According to Hindustan Times, Garg earlier this year had also sent a mail to his employees and acknowledged that he personally guaranteed $750 million of the $1.5 billion cash infusion into the company by SoftBank.I am fully committed with everything I own and will ever own. Five years from now, when that SoftBank $750 million loan comes due around my 50th birthday, it means I have nothing. Well, at least we will have given it a real shot… this is true. I did personally guarantee three quarters of a billion dollars and I’m personally liable for it,” he told the employees.However, a lawyer for Better.com has claimed the acquisition to be “without merit” in an emailed statement to Reuters. “The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit,” he added.