The SEC is examining whether mortgage lender Better.com and merger partner Aurora Acquisition violated federal securities laws, Reuters reports.
In the second-quarter of 2022, Better and Aurora received voluntary requests from the regulator for some documents and information, Aurora said in a filing.
“We believe it’s a routine request for information, not an inquiry,” a spokesperson for Better.com said in an emailed statement to Reuters.
The SEC requests, cover among other things, information on the business transactions of CEO Vishal Garg and allegations made in a lawsuit against him filed by Sarah Pierce, Better.com’s former head of sales and operations.
Last month, Pierce filed a lawsuit claiming that Garg misrepresented Better.com’s statements to ensure investors go through with a SPAC merger instead of withdrawing due to its financial condition.
Announced more than a year ago, the deal has been lurching along through one situation after another, including lawsuits, investigations and mass layoffs via Zoom. Read more.
