Online mortgage lender Better.com and its Chief Executive Vishal Garg allegedly misled investors in financial filings and other representations it made as it attempts to go public, according to a lawsuit filed Tuesday by a former top executive at the company.
Sarah Pierce, Better.com’s former executive vice president for sales and operations and one of its top executives, said Mr. Garg and the company allegedly misrepresented Better.com’s business and prospects to keep investors onboard with a planned merger with a special-purpose acquisition company, or SPAC. The deal was agreed to last May and has yet to close.
