Lawsuits against Better's CEO could threaten the company's SPAC deal

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Lawsuits against Better's CEO could threaten the company's SPAC deal
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Investors have long accused Better CEO Vishal Garg of self-dealing. Now, their lawsuits could threaten the company's SPAC deal.

Investors unearthed new docs to allege CEO Vishal Garg misappropriated their funds to launch Better.Better.com, the embattled mortgage startup that has laid off more than 4,000 employees since December, says it is set to go public through a

The new filings, in which investors claim Garg and his business partners were not transparent about the dynamic between related entities, heighten a. They're also casting a shadow over the pending deal to go public through a special-purpose acquisition company. Representatives for Better investors SoftBank, Ally Financial, and Pine Brook didn't respond to a request for comment. A representative for Aurora declined to comment for this story.The crux of the Cayman Islands investors' allegations is that Garg and his business partners misappropriated distributions meant for Phoenix Holdco, the limited partnership that served as their investment vehicle.

One document in particular raised questions about how Garg and others managed their funds, the investors said. An auditor's report in July 2021 by Cayman Moore highlighted instances in which it said a Phoenix director used their personal bank account to manage the partnership's finances. The report didn't identify the director.

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