A securities class action has been filed against Better Home & Finance Holding Company (BETR) on behalf of persons and entities that purchased or otherwise acquired Better Home securities between March 13, 2026 through May 7, 2026. This case has been filed in the USDC – SDNY.
Better Home operates as a homeownership company in the United States. The Company provides government-sponsored enterprise conforming loans and associated loans to banks, insurance companies, asset managers, and mortgage real estate investment trusts.
On May 7, 2026, before the market opened, Better Home released its first quarter 2026 financial results, including “guidance of Loan Volume of $1.575 to $1.725 billion” for the second quarter of 2026, falling short of the previously issued guidance of $1.0 billion in Monthly Loan Volume by the end of May 2026.
During the earnings call held the same day, the Company’s Chief Executive Officer, Vishal Garg (“Garg”), stated that “conversion rates are down from where they were in Q1” and “customers are not converting at nearly the same rate.” Garg revealed that, as a result, the achievement of “our $1 billion monthly funded volume target . . . looks like it’s going to be deferred.”
On this news, Better Home’s stock price fell $12.17, or 28.5%, to close at $30.52 per share on May 7, 2026, on unusually heavy trading volume.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company’s conversion funnel was already slowing due to macro factors; (2) that, as a result, the Company’s $1 billion monthly funded volume target was likely to be deferred; and (3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.