A Founder's Fall
Vishal Garg, the founder and longtime CEO of the digital mortgage lender com, was removed from his position on August 3 after 12 years at the helm, according to a report by uk. His replacement, hedge fund manager Daniel Lewis, had joined the company's board only a week earlier, on July 27, after being nominated by Garg himself. Lewis has since been installed as interim CEO, and the two are now locked in a bitter legal dispute over control of the company.
Garg, who made headlines in 2021 for firing 900 employees on a Zoom call before Christmas, told CNN he felt tricked by the move. 'He said he liked the company's strategy. He praised us on X and used that to get on our board and win our confidences,' Garg claimed, according to uk. He said he suspected Lewis had convinced the board to fire him, adding, 'I suspect he always wanted to become CEO. The board made a mistake.'
The Unraveling of a 'Bromance'
The relationship between Garg and Lewis, as detailed in court filings reported by the New York Post, had once been warm. Lewis, an activist investor who had begun building a stake in Better in 2025 and disclosed ownership of 476,283 Class A shares in October, showered Garg with praise in private messages. 'You are by far the most compelling CEO in my public portfolio,' he wrote on March 10. He had previously told Garg 'I actually love you' and called him a 01%' talent.
But by May, Lewis was warning Garg about his reputation and proposing sweeping changes, including board resignations. Garg's departure triggered a legal fight: on the night of August 4, after Garg was fired, Lewis sent around Garg's nomination just days earlier, messages including 'You are in my heart' and 'REMOVING VISHAL GARG IS NOT WINNING. HE IS OUR FOUNDER.' Yet Garg now alleges Lewis had maneuvered his way into power after months of courtship, and his attorneys call Lewis the 'architect of the coup.'
The Legal Standoff
Garg has filed an opposition to Better's request for a court order restricting his shareholder revolt, in which he claims Lewis gained power by ingratiating himself. Lewis responded to the Post: 'At the time of those quotes, I was an outside shareholder trying to coach Vishal. All the love for died when the diligence began.' A spokesperson for Garg called these claims 'straight-up false.'
Better has countersued. On August 18, the company filed a complaint in the US Southern District of New York, alleging Garg violated two federal securities laws. Per Forbes, the board voted unanimously to remove Garg, citing net losses of more than 5 billion since 2022 and a stock price plunge of over 90%. uk carried the Forbes )
Financial and Operational Turmoil
The company's financial picture has deteriorated sharply under Garg's 12-year tenure. Sales dropped from 5 billion in 2021 to $70 million in 2023. Garg maintained that Better was on track to deliver $200 million in sales this year, saying 'We've tripled loan volume. We're close to profitability' and called himself 'We're winning.' After the 2021 layoffs, the company was hit with negative reviews and Garg was criticized.
Garg's financial war chest has also taken a hit on the stock, tumbling 6% from its August 3 close of 30 to a low of 95 the next day, and falling nearly 60% to 68. In the week since, according to the Post.
Lewis also took a four-week vacation in the south of France after taking the helm, as per a filing.
Garg's Demands and Claims
Garg has demanded reinstatement and in a letter to the board sent a release on August 3, he demanded he be allowed to return as CEO and has hired a lawyer. He claimed the company's board had offered him a position for return as vice chairman and adviser , which he rejected, a position worth more than $15 million through the end of 2027.
He also claimed board chair Harit Talwar and director Prabhu Narasimhan suggested 'off-ramp' and asked for a requisition letter to call a shareholder vote. Narasimha wrote on Aug. 10: 'If a requisition letter is sent and the board is sacked we are done.' Garg initially claimed majority support for reinstating him but now acknowledges around 45% of the vote, according to the Post.
Garg said he'd work for $1 a year until the company returns to profitability, then leave. 'It's not about me,' he said, going on 'I care about delivering savings to people and helping them live the greatest American Dream. So when shareholders said "You need to take a back seat," I complied.'
A Pattern of Controversy
Garg's history includes past scandals beyond the Zoom layoffs. On the 2021 call, he laid off 900 employees 'effective immediately,' according to a statement from the company's CFO Kevin Ryan at the time: 'Having to conduct layoffs is gut-wrenching, especially this time of year.' Garg told employees: 'This is the second time in my career I'm doing this and I do not want to do this. The last time I did it, I cried.' He was subsequently told to take a leave of absence before being reinstated.
Garg later wrote a blog post alleging that at least 250 of the terminated employees were 'working an average of 2 hours a day while clocking 8 hours+ a day' and 'They were stealing from you.' Court papers, as reported by uk, also showed that Garg once threatened to burn an ex-business partner alive, according to court papers.