US tech firm asks court to block CEO who fired 900 in 79-second call
Better Home & Finance has filed a lawsuit to block former CEO Vishal Garg from soliciting shareholder support to regain his position. The company alleges Garg violated securities laws following his removal due to poor financial performance.
Why it matters
This case illustrates corporate governance conflicts and the legal complexities of leadership transitions in struggling tech firms.
US-based Better Home & Finance has asked a US court to stop former CEO Vishal Garg from seeking shareholder support for at least 30 days, escalating a fight that began after the mortgage technology company removed him from the CEO role earlier this month. In a complaint filed in the US Southern District of New York, Better Home accused Garg of violating federal securities laws by allegedly seeking to build shareholder support to regain his job and making misleading statements. According to a report by Fortune, the company is also asking the court to cancel any shareholder approval Garg may have already collected.Why Better Home wants its former CEO Vishal Garg blockedBetter Home's board voted unanimously, excluding Vishal Garg, to remove him as CEO on August 3.
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