Vishal Garg, founder of Better.com, claims he has secured enough shareholder support to dismiss the board members who ousted him, potentially regaining control of the beleaguered mortgage company just two months after his unexpected removal.
On Wednesday, Garg’s investor group revealed that shareholders representing over 51% of Better’s voting power have provided written consent to remove interim CEO Daniel Lewis along with four other directors.
If the company acknowledges these votes, Garg’s group would have sufficient backing to shake up the board — effectively reversing the decision that led to his firing as CEO on August 3.
However, Garg, who made headlines five years ago after laying off around 900 employees via a Zoom call, doesn’t intend to reclaim his previous position.
Instead, his group aims to appoint an interim CEO with experience in the mortgage industry, while Garg would take on a role focused on product, platform, and innovation at Better.
“This is a clear victory for Better’s shareholders, customers, and employees, all of whom helped organize the response to the actions taken by Daniel Lewis and the current board,” Garg stated while announcing the vote.
His attorney, Alex Spiro from Quinn Emanuel, noted that the vote “serves the best interests of every Better shareholder.” He added, “No public CEO has ever been dismissed, fought back legally, and successfully regained control all in two months. Vishal Garg has been vindicated.”
Better.com, based in New York, has seen its market value plummet to around $200 million to $230 million from a peak of $7.7 billion when it announced its SPAC deal in 2021.
An insider described Garg’s comeback as an incredible turnaround after being “completely thrown out.”
“He fought his way back and managed to take control of the company,” the source explained, noting that Garg spent weeks garnering support from hesitant shareholders, similar to running a political campaign.
“These people, one by one, opened that envelope, checked his name, and said, ‘I’m with these guys.’ One by one,” the source said.
The board was reportedly blindsided when Garg’s group surpassed the majority mark, with one source stating, “Their jaws hit the floor. They cannot believe this just happened.”
This latest event represents a significant shift in a heated boardroom conflict that escalated after Garg nominated Lewis — an investor and close associate — to the board on July 27.
Just a week later, the board dismissed Garg after nearly 11 years as CEO and appointed Lewis as interim leader, which was particularly surprising given Lewis’ earlier praise of Garg in private messages.
In a text sent in March, Lewis declared, “I actually love you,” and praised Garg as “by far the most compelling CEO in my public portfolio.” Even just hours after Garg’s ousting, Lewis reached out to him, saying, “You are on my mind. You are in my heart, whether you believe it or not.”
Less than two minutes later, Lewis emphasized, “REMOVING VISHAL GARG IS NOT WINNING. HE IS OUR FOUNDER.”
Lewis, who described himself as an outside shareholder attempting to advise Garg during their correspondence, noted his perspective changed after uncovering what he termed “corporate waste” and “dysfunction” at Better.
Initially, Better presented Garg’s exit as a mutually agreed transition, stating on August 3 that it was time for new leadership. Later, they revealed that all directors except for Garg had voted to dismiss him due to concerns about his “judgment, temperament and credibility.”
In response, Garg initiated a campaign to remove Lewis and directors Harit Talwar, Bhaskar Menon, Arnaud Massenet, and Prabhu Narsimhan.
This campaign rapidly became complicated. While Garg initially claimed he had majority backing, his lawyers later conceded that his initial coalition only held just over 45% of the voting power due to inaccuracies in a voting-power schedule created by Better’s in-house counsel, which inaccurately included convertible options not eligible for voting.
Subsequently, Better accused Garg in a Manhattan federal court of violating securities laws related to the shareholder campaign, alleging false statements about his support and improper coordination with other investors.
Garg denied any wrongdoing, arguing that some members of the board had encouraged him to demonstrate shareholder opposition to the new regime.
The Post has requested comments from Better.
