The litigation centers on claims that the firm misled shareholders during the first quarter of 2026. On March 13, then-CEO Vishal Garg and CFO Loveen Advani publicly maintained that the company remained on track to hit $1 billion in monthly loan volume by May. However, the company’s May 7 financial report revealed a stark reality: quarterly projections were slashed to a mid-point of $1.65 billion, effectively cutting the monthly target to $550 million—a 45% miss against previous guidance.

Beyond the missed volume targets, the company reported that its net loss surged 75% sequentially and 39% year-over-year. Following the disclosure, which Garg attributed to deteriorating conversion rates influenced by macroeconomic pressures, the company’s stock plummeted. The firm Hagens Berman is now investigating whether Better Home management knowingly concealed the slowing conversion funnel while publicly touting resilience against market conditions. The investigation aims to determine exactly when leadership recognized that their growth targets were unattainable, an inquiry that ultimately preceded the CEO's departure from the company.