The U.S. Securities and Exchange Commission (SEC) is investigating recent allegations leveled against mortgage lender Better.com.
As we previously reported, former senior vice president Sarah Pierce filed a lawsuit against her employer, and in it, 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.
Better.com execs say they’re cooperating with the SEC investigation, while also acknowledging that they’re exploring the possibility of abandoning their attempt to take Better.com public, per Inman.
Additionally, two banks serving as advisors on the public deal have resigned. Both Barclays and Citigroup resigned at the end of last month, waiving $16 million in fees they would be owed upon completion of the merger.