Things continue to go from bad to worse for Better.com. Following a very public mishandling of employee layoffs, followed by even more layoffs, the mortgage lender is now facing a lawsuit from a former senior vice president.
The suit brought by Sarah Pierce alleges that Better.com leadership misled investors in financial filings as it attempts to go public. CEO Vishal Garg is named, according to the Wall Street Journal, to have presented false accounting to keep investors onboard with a planned merger.
Pierce alleges that the company overstated the strength of its brand in financial filings relating to a potential merger. The deal was agreed to in May 2021 but has yet to close.
“We have reviewed the claims in the complaint and strongly believe them to be without merit,” Better.com said in a statement to the Wall Street Journal. “The company is confident in our financial and accounting practices, and we will vigorously defend this lawsuit.”
Pierce reportedly raised the concerns internally while still employees at Better.com, after which she alleges she was let go from the company.