Lender Better faces SEC probe for alleged federal laws violation (updated)

Better Home & Finance Holding

15/07/2022 02:50

(Adds Better.com comment)
    July 14 (Reuters) - The U.S. Securities and Exchange
Commission (SEC) is examining whether mortgage lender Better.com
and the special purpose acquisition company it has agreed to
merge with, Aurora Acquisition Corp  AURC.O , violated federal
securities laws.
    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 on Thursday.
    "We believe it's a routine request for information, not an
inquiry," a spokesperson for Better.com said in an emailed
statement. 
    The SEC requests, cover among other things, information on
the business transactions of Chief Executive Officer 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.  urn:newsml:reuters.com:*:nL4N2XU3MR
     Better.com and Aurora are cooperating with the SEC, the
blank check company added in the SEC filing.
    The SEC declined to comment and Aurora Acquisition Corp,
too, declined to comment beyond the filing.

 (Reporting by Shivani Tanna and Abinaya Vijayaraghavan in
Bengaluru; Editing by Rashmi Aich)
 ((ShivaniJayesh.Tanna@thomsonreuters.com;))