– A former Higher.com worker is suing the corporate and its chief govt, Vishal Garg, alleging they supplied deceptive statements to traders in regards to the digital mortgage agency’s monetary prospects and efficiency.
Sarah Pierce, a former govt vice-president for gross sales and operations on the SoftBank-backed firm, claimed in her lawsuit that Garg misrepresented Higher.com’s statements to make sure traders undergo with a SPAC merger as an alternative of withdrawing resulting from its monetary situation.
A Higher.com lawyer stated the claims have been “with out benefit”.
SoftBank didn't instantly reply to a Reuters request for remark.
Higher.com’s plan to go public by a merger with a special-purpose acquisition firm (SPAC) Aurora Acquisition Corp, in a deal that valued it at $7.7 billion, was agreed to final 12 months and has but to shut.
SPAC offers have been among the many hottest funding developments throughout the pandemic as early-stage corporations regarded to go public.
Pierce stated within the lawsuit – filed on Tuesday in a U.S. district courtroom, southern district of New York – that she was pushed out of her position in February in retaliation for elevating issues in regards to the deal. She is looking for monetary compensation.
“We now have reviewed the claims within the grievance and strongly consider them to be with out benefit,” a lawyer for Higher.com stated in an emailed assertion to Reuters. “The corporate is assured in our monetary and accounting practices, and we'll vigorously defend this lawsuit,” the lawyer added.
Based in 2016 and headquartered in New York, Higher.com gives mortgage and insurance coverage merchandise to householders by its on-line platform.
Final 12 months, Garg needed to apologize for his method of dealing with layoffs after a video of him firing 900 staff over a Zoom name went viral on social media.
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