San Francisco, October 23rd / PRNewswire / -- Better Home & Finance (Nasdaq ticker: BETR) is facing a class-action lawsuit after disclosing that its net loss in the first quarter of 2026 increased by 75% quarter-over-quarter and 39% year-over-year, and significantly retracted its previous commitment to achieve a monthly loan disbursement volume of $1 billion by the end of May.
This news caused the stock price of Better Home to fall by more than 28% on May 7, 2026. After the end of the class-action lawsuit period, the company fired its CEO.
These developments prompted the national shareholder rights law firm Hagens Berman to launch an investigation to determine whether Better Home has violated federal securities laws.
The law firm urges investors who have suffered significant losses due to Better Home to immediately submit details of their losses.
During the class-action period:March 13, 2026 – May 7, 2026
Chief plaintiff deadline:November 20, 2026
Access:www.hbsslaw.com / betr
Direct contact email:[ email protected ]
Telephone:844-916-0895
Video:https :// youtu.be / Ygi-WyT2eQ8
Better Home & Finance (BETR) Securities Class Action:
On March 13, 2026, Better Home announced its financial results for the fourth quarter of 2025, highlighting the growth in the scale of loans issued and the performance of conversion rates. The conversion rate refers to the process of transforming website visitors or mortgage applicants into customers who actually obtain loans.
At the financial report conference on that day, the then CEO Vishal Garg stated to investors: "We are still on track to achieve a monthly scale of $1 billion by May 2026 and to reach break-even after adjustments by the end of the third quarter of 2026." In addition, the Chief Financial Officer Loveen Advani assured investors that "Better continues to create opportunities beyond the broader economic and mortgage loan market environment," and that "with a vast market to serve and a current market share of less than 1%, we have proven that we can achieve growth regardless of the macroeconomic environment."
The focus of the lawsuit is whether these and other statements made by the company and its management to investors are appropriate.
More specifically, according to the indictment, Better Home did not disclose key information to investors—that is, the company's conversion funnel had slowed down due to macroeconomic factors, and therefore, the goal of distributing $1 billion per month was likely to be postponed.
On May 7, 2026, investors learned the truth. On that day, Better Home announced disappointing first-quarter results for 2026. The company failed to achieve a monthly loan disbursement target of $1 billion and actually lowered this figure, stating that in the three months of the second quarter, investors should expect a quarterly loan disbursement target of only $1.65 billion, which is at a median level. In other words, compared to the planned monthly loan disbursement target of $1 billion, Better Home's new target of $550 million per month represents a shortfall of up to 45%.
In addition, the net loss increased by 75% month-on-month and by 39% year-on-year.
At the financial report conference on that day, Garg admitted, "Due to macroeconomic factors, the conversion rate has decreased compared to the level of the first quarter."
The market reacted quickly, pushing down the price of Better Home by more than 28% on the same day. As of the beginning of this year to date, the stock has fallen by nearly 60%.
"What we're concerned about is when Better Home will realize that it doesn't have resilience to macroeconomic factors, and that its monthly loan disbursement target of $1 billion can no longer be achieved," said Reed Kathrein, the partner in charge of this investigation from Hagens Berman.
If you have invested in Better Home and suffered significant losses, or possess information that could assist the investigation by this law firm, please submit your loss details immediately. »
Whistleblower:Individuals in possession of non-public information related to Better Home should consider their options for assisting in investigations or taking advantage of the SEC Whistleblower Program. Under this new program, whistleblowers who provide original information are eligible to receive rewards equivalent to up to 30% of the amount successfully recovered by the SEC. For more information, please call Reed Kathrein at 844-916-0895, or send an email to [ email protected ].
About Hagens Berman
Hagens Berman is a global law firm specializing in complex litigation involving plaintiff rights, with a focus on corporate accountability. The firm has a strong practice representing investors, whistleblowers, workers, consumers, and others who have been harmed by corporate negligence and other improper conduct, and has achieved tangible results in related cases. The team at Hagens Berman has secured over $2.9 billion in compensation in this legal area. For more information about the firm and its achievements, please visit hbsslaw.com. Follow the firm's updates and news on @ClassActionLaw.
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