US tech firm asks court to block CEO who fired 900 in 79-second call

Better Home & Finance, a US-based technology firm, has petitioned a US court to halt former CEO Vishal Garg from seeking shareholder support within a 30-day period, escalating a dispute that began when the mortgage technology company removed him from his role in August. According to a complaint filed in the US Southern District of New York, Better Home claims Garg attempted to acquire shareholder backing to regain his position and made misleading statements, potentially in violation of federal securities laws.

The company is also requesting the court to annul any shareholder approval Garg may have already amassed. Better Home's board unanimously voted to remove Garg as CEO on August 3, citing net losses exceeding $1.5 billion since 2022 and a 90% decline in its stock price during his tenure. Following his removal, Garg reportedly initiated a "campaign of retribution," sending a letter to the board the following day demanding the resignation of all board members and claiming to have organized a "group of concerned shareholders" to help him regain the CEO position.

The company alleges Garg sought shareholder support through various channels, including press releases, text messages, social media posts, and an interview with Bloomberg, in addition to asserting he had secured 52% of the shareholder vote without fulfilling the necessary proxy statements with the Securities and Exchange Commission (SEC).