Interim CEO Daniel Lewis of Better.com took a vacation to the South of France during his first week on the job, while ousted founder Vishal Garg has been orchestrating a bid to regain control of the company, according to sources. Garg has reportedly secured support from shareholders representing 52% of the company's voting shares, aiming to oust Lewis and five board members.
Lewis had informed colleagues of his planned trip to the South of France. One source indicated that Lewis appeared on a Zoom call from what seemed to be a vacation setting in a different time zone. The interim CEO stated to The Post, "It's sad Vishal's life's work underperformed Treasury securities. I've never obliterated billions of dollars of shareholder value from any place at all."
The challenge to leadership comes less than two weeks after Better abruptly removed Garg as CEO and appointed Lewis, an investor who had joined the board only about a week prior. Dissident shareholders have reportedly retained the law firm Quinn Emanuel and are preparing to remove Lewis and the directors through a shareholder vote if they do not resign. This process could take between 10 and 35 days.
The company's board issued a statement Friday asserting that every director except Garg had unanimously voted to terminate him, citing "a series of decisions and actions that raised serious concerns regarding his judgment, temperament and credibility." This statement differed from Better's August 3 announcement, which stated Garg and the board had "mutually agreed" on his transition out of the CEO role.
The board also blamed Garg for delaying Better's quarterly filing, stating his refusal to sign required representation letters was the "sole cause." Sources close to Garg disputed this account, claiming he repeatedly sought the final version of the filing and was prepared to sign it after receiving it shortly before the deadline.
Additionally, the board accused Garg of presiding over more than $1.5 billion in cumulative net losses since 2022 and a stock price decline exceeding 90%. Sources close to Garg acknowledged the losses but argued that Better has since improved its financial performance, reporting $54.7 million in revenue and a $30.6 million net loss for the second quarter. The board also stated it had reviewed communications that, according to its lawyers, indicated Garg's involvement in conduct that "may constitute violations of US securities laws." Garg's representatives denied any such violations and stated neither he nor his attorneys had been shown the referenced communications.
The internal turmoil has also affected other executives. Better co-founder and chief legal officer Nicholas Calamari was placed on administrative leave Sunday night and informed his position would be eliminated. His company email access was revoked, and he was instructed not to report to the office or represent Better.
This leadership battle follows a period of significant upheaval at Better. Garg previously faced widespread criticism in December 2021 for firing approximately 900 employees during a Zoom call. He later apologized for the handling of those layoffs and temporarily stepped down before returning as CEO. Better went public through a merger with Aurora Acquisition Corp. in August 2023. The company's board is urging shareholders to refrain from taking action while Garg's allies prepare to assert their claimed voting majority to reshape the company's leadership. If Lewis and the current directors refuse to step down, the dissident shareholders intend to proceed with their removal.