Former CEO who fired 900 employees on Zoom sued by company after allegedly trying to retake control
Former Better.com CEO Vishal Garg, who made headlines in 2021 for laying off 900 employees via Zoom, is now facing a lawsuit from the mortgage company he once led.
As per reports by Forbes, Better Home alleges that Garg attempted to rally shareholders and regain control of the company after its board removed him as CEO.
Garg’s misleading campaign to regain control
Better Home reportedly filed the complaint on Tuesday, August 18, in the U.S. Southern District of New York. The company accused Garg of violating two federal securities laws and claimed that he tried to “cultivate a coalition of shareholders” and flooded “the market with misleading statements.”
These actions were allegedly a part of an effort to return to the CEO role. Better Home had unanimously voted to remove him from the position on August 3.
The complaint pointed to more than $1.5 billion in net losses since 2022 and a stock-price collapse of more than 90% during Garg’s tenure as key reasons for the board’s decision.
Garg is said to have responded with what Better Home describes as a “campaign of retribution.” On August 10, he called for every board member to resign and said he had assembled a “group of concerned shareholders” to help restore him to the top job.
He allegedly used press releases, text messages and social media posts to rally shareholder support. Better Home also claimed that Garg falsely told Bloomberg that he had secured support from 52% of the company’s shareholders.
According to the company, Garg pursued the campaign without filing the proxy statements required by the Securities and Exchange Commission.
As of now, Better Home has requested 30 days, after which shareholder approval will be invalidated and he will be barred from soliciting their support.
How Vishal Garg laid off 900 employees on Zoom
Garg’s reputation as a controversial boss was established years before his latest dispute with Better Home, the company he founded in 2016.
In December 2021, CNN Business reported that Garg abruptly fired about 900 employees, as in roughly 9% of Better.com’s workforce. He delivered the news during a Zoom webinar shortly before the holidays.
“If you’re on this call, you are part of the unlucky group that is being laid off,” Garg said. “Your employment here is terminated effective immediately.”
He acknowledged the weight of the decision but delivered his message without ceremony and explained, “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.”
Now, years after the infamous incident, Garg is facing another fight with the company he built.