Better.com and SPAC Partner Face SEC Probe for Alleged Federal Laws Violation

SEC

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.

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