A year ago, the CEO of Better.com, Vishal Garg was highlighted in the news for firing 900 employees over a Zoom call. Back then, he accused some of the company’s employees of “stealing” as a result of being unproductive.
Now, an ex-employee of the company has bitten back by blowing the whistle on the CEO. Sarah Pierce, the company’s former Executive Vice President has filed a lawsuit against Mr. Garg in the Manhattan Federal Court. She has accused the CEO of misleading investors to keep them on board to fulfill the plans of making the company public.
Sarah Pierce has filed a lawsuit against Mr. Garg in the Manhattan Federal Court. She has accused the CEO of misleading investors to keep them on board to fulfill the plans of making the company public
She has mentioned in the lawsuit that Mr. Garg misrepresented the financials of the company so that the investors would go through with a deal. This deal was valued at $7.7 billion with the SPAC (Special Purpose Acquisition Company), Aurora Acquisition Corp. will allow Better.com to go public.
Sarah Pierce has claimed that in February when she called out the company and started pushing everyone to correct the misinformation, she was fired. She mentioned that she had confronted the CEO and told him that she “would not enable his false narrative.”
He had also misinformed the directors and investors that the company will be profitable in the first quarter of 2022 even after Pierce and other seniors pointed out that this was not possible. The company had earlier disclosed that it could reach $182 million in losses in Q4 2021. In March 2022, the company fired 3000 employees in the U.S. and India.
“The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit.”– Spokesperson of Better.com
Although a spokesperson from the company has said that these claims are “without merit”. The company will defend the lawsuit and seems very confident. The SoftBank-backed company’s spokesperson said, “The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit.”