Better Home & Finance Holding Company (NASDAQ: BETR) has filed a complaint in the United States District Court for the Southern District of New York against Vishal Garg, its former chief executive officer, alleging violations of federal securities laws.

According to the company's statement, Garg and its independent directors had mutually agreed that he would step down as part of a planned leadership transition. The company alleges that Garg subsequently sought to replace the board and reclaim his CEO role through what it describes as an unauthorized shareholder solicitation campaign.

The complaint alleges that Garg violated Section 13(d) of the Securities Exchange Act of 1934 by assembling a group of shareholders to support his effort without making required disclosures, including the group's membership, arrangements between members, and shareholdings. The company states that in a recent securities filing, Garg claimed to be acting alone, which it says contradicts evidence in its possession.

The complaint also alleges violations of Section 14(a) of the Exchange Act, citing communications in which Garg claimed more than 50% of the company's voting power supported his position, and alleges he solicited shareholder support without first filing a required definitive consent solicitation statement.

Better is seeking declaratory and injunctive relief, including an order requiring Garg to file a complete Schedule 13D disclosure, correct what the company characterizes as false and misleading statements, and cease his solicitation until proper filings are made. The company also seeks a ruling that any shareholder consents obtained through Garg's alleged unlawful solicitation be declared void.

The company said it intends to file a preliminary consent revocation statement with the U.S. Securities and Exchange Commission. Shareholders were advised that no action is required at this time.