Better Settles Whistleblower Suit With Ex-Operations Head

Better settled the whistleblower suit filed by its former head of operations, Sarah Pierce.

The digital mortgage lender and its chief executive officer, Vishal Garg, settled the long-simmering dispute under mysterious terms, Inman reported. The sides notified the court they came to an agreement on a “voluntary dismissal with prejudice,” meaning it cannot be retried.

Pierce filed her lawsuit three years ago, accusing Better.com of misleading investors in financial filings and other statements as it prepared to go public. Pierce further alleged she was forced out of the company after raising her concerns.

The former executive also filed a complaint with the Occupational Safety and Health Administration, alleging she was retaliated against for raising concerns; that complaint was quickly dismissed.

After Pierce filed her lawsuit, the company — now operating as Better Home & Finance Holding Company — denied her allegations. It proceeded to file its own lawsuit in response, seeking repayments of two loans totaling more than $2.2 million.

Pierce’s allegations, meanwhile, prompted an investigation from the Securities and Exchange Commision. Around the same time, Garg took a leave of absence following a disastrous mass layoff conducted on Zoom. The SEC investigation concluded in August without a recommendation for enforcement actions.

That same month, Better closed its SPAC merger, netting $565 million in the process.

In January, Pierce was issued a $2.76 million judgment against her, which included interest on the loans Better was asking to be repaid. Pierce appealed before the latest settlement was reached. Her judgment has been marked as satisfied, though it’s unclear if she actually repaid the debt or if it was forgiven as part of the settlement terms.

“We can’t comment on the litigation settlement, which is confidential,” a Better spokesperson told Inman. Pierce and her team did not return a request for comment.

Better posted a $543 million loss last year. Shares were trading for roughly 40 cents a piece this week, putting the company’s market capitalization below $300 million.
— Holden Walter-Warner