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The former manager claims that Better.com misled investors to secure the SPAC deal



(Reuters) – A former Better.com boss is suing the company and its CEO, Vishal Garg, claiming they have made misleading statements to investors about the digital mortgage company’s financial prospects and results.

Sarah Pierce, a former executive vice president of sales and operations at the SoftBank-backed company, claimed in her lawsuit that Mr. Garg misrepresented Better.com’s statements to ensure that investors go through with a SPAC merger instead of pulling out because of its financial situation.

A lawyer from Better.com said the claims were “without merit”.

SoftBank did not immediately respond to Reuters’ request for comment.

Better.com̵

7;s plan to go public through a merger with Aurora Acquisition Corp., in a deal valued at $ 7.7 billion, was approved last year and has not yet been completed.

SPAC business was among the hottest investment trends during the pandemic as companies at an early stage seemed to be listed on the stock exchange.

Ms Pierce said in the lawsuit – which was filed Tuesday in the U.S. District Court for New York’s Southern District – that she was pushed out of her role in retaliation in February for raising concerns about the deal. She is seeking financial compensation.

Better.com was founded in 2016 and is headquartered in New York and offers mortgage and insurance products to homeowners through its online platform.

Last year, Garg had to apologize for his way of handling redundancies after a video in which he fired 900 employees over a Zoom call went viral on social media.


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