Better Files Lawsuit Against Founder and Former CEO Vishal Garg

Industry Pulse News Desk · 2026-08-30

Digital mortgage lender Better has launched legal action against its founder Vishal Garg amid an intensifying struggle over the company's board of directors.

Digital mortgage lender Better has filed a lawsuit against its founder and former chief executive officer, Vishal Garg, marking a significant escalation in a corporate battle for control of the company. The legal action follows growing friction between Garg and the mortgage provider's current leadership over board representation and operational direction.

The complaint alleges that Garg breached fiduciary duties and engaged in actions aimed at destabilizing the company's governance structure. Better is seeking injunctive relief to prevent Garg from interfering with corporate management and board elections, according to court documents filed this week.

Garg served as chief executive officer of Better until his departure following widespread scrutiny over executive conduct and corporate restructuring efforts. Since stepping down from the operational helm, Garg has retained a substantial equity stake in the firm and has sought to influence the composition of its governing board.

Representatives for Better stated that the legal filing was necessary to protect the business interests of shareholders, employees, and clients against unauthorized governance maneuvers. The suit claims that ongoing interference from the former executive risks disrupting business operations during a challenging period for the broader mortgage sector.

Garg has not yet formally responded to the lawsuit in court, and legal representatives for the former executive have not issued a statement regarding the claims. The case is expected to proceed in court, where a judge will review the petition for preliminary injunctive relief.