New York (CNN Business) Vishal Garg, the Better.com CEO who fired 900 employees over Zoom just before Christmas, has been sued by a former executive for allegedly misleading investors. The SoftBank-backed online mortgage company agreed to a $7.7 billion merger with a blank-check firm to take the company public just over a year ago, but the so-called SPAC deal has yet to close. Since then, Garg's public controversy — and surging mortgage rates — have hurt the company's image and business. Garg feared investors would withdraw the merger agreement because of Better.com's deteriorating financial condition, Pierce alleged. She is suing both Garg and Better.com for making false statements to investors about the digital mortgage firm's financial prospects and performance.

Source: CNN June 08, 2022 17:55 UTC