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The CEO who fired 900 people on Zoom just before Christmas wants his job back

By CNN

(CNN) — Vishal Garg feels duped.

“He hoodwinked me,” the just-ousted Better Home & Finance CEO said about Daniel Lewis, the man who replaced him last week. “He said he liked the company’s strategy. He praised us on X and used that to get on our board and win our confidences.”

Garg, who made headlines for laying off 900 employees on a company Zoom just before the 2021 holiday season, says he was fired on August 3 just as he brought the company to the precipice of success.

Better has been through a lot with Garg at the helm over the past several years. During the pandemic-fueled refinancing boom when mortgage rates were below 3%, the company held an $8 billion valuation. Today, with an imploded refi business and rates closing in on 7%, the AI mortgage company’s market value stands at just $300 million.

Toss in a leave of absence after the embarrassing Zoom layoff fiasco, a whistleblower lawsuit (it was dropped), an investigation from the Securities and Exchange Commission (nothing came of it), a disastrous 2023 SPAC merger that sent the company’s stock cratering 93% and years of mounting losses … it’s a minor miracle that Garg lasted this long as CEO.

But Garg says he was just about to deliver on the company’s unlikely turnaround.

After its core refinancing business went belly up, Better’s annual sales plummeted from $1.5 billion in 2021 to $70 million in 2023. This year, the company is on pace to deliver $200 million in sales, he said.

It bounced back by training AI models to quickly process mortgages — a task that would normally take dozens of people several days to accomplish. It partnered with Neo Home Loans, which doubled productivity and reduced loan origination costs by 50%, Garg claims. Impressed with the results, Intuit, Coinbase and OpenAI partnered with Better this year to power their mortgage services. The company also developed a strong home equity line of credit business.

“We’re winning. We’ve tripled loan volume. We’re close to profitability,” Garg said. “We were at the 5-yard line after taking the ball all the way down the field from the other side.”

Garg acknowledges he’s “hard-nosed” and the famous Zoom layoffs severely damaged the company’s reputation — a mistake he knows will continue to haunt him. But as criticized as Garg has been for placing near-impossible demands on the company and its employees, he said Lewis convinced the board he didn’t push hard enough.

Better and Lewis did not respond to a request for comment. On August 4, Lewis posted on X, “There was never a $BETR without @vishal_better. That demands respect.”

‘It’s not about me’

Lewis, a hedge fund manager with a mixed track record of success, approached Garg six months ago with thoughts about cost savings and good ideas about delivering profitability, Garg says.

“(Lewis’) thoughts about cost savings were good. His ideas about innovation were not,” Garg argued. “It’s so much easier when we’re this close for someone to come in and say that they could have done better.”

Lewis was brought on to the board on July 27. A week later, he had convinced the other directors to oust Garg as CEO and name himself as Garg’s replacement.

“It’s not about me,” Garg said. “I care about delivering savings to people and helping them live the American Dream. So when shareholders said, ‘You need to take a back seat,’ I complied.”

But Garg says he believes Lewis hadn’t been forthcoming about his intentions over the past several months, as he advised Garg and convinced him to give him a board seat.

“I suspect he always wanted to become CEO,” said Garg. “The board made a mistake.”

Investors appear to agree with Garg. The stock has fallen 45% since Lewis took over as CEO. (The stock had been down more than 16% this year before Garg’s departure was announced.)

In the week since Garg stepped aside (but remained on the board) he says a number of horrified investors reached out to plead with him to take his CEO job back. Armed with Class B shares with special voting powers — his own and from a group of committed early investors — Garg says he has the votes to win.

He has retained high-powered lawyer Alex Spiro, partner at Quinn Emanuel, to represent him, and he sent a letter to the board on Monday demanding it return him as CEO. He says he’ll work for $1 a year until he returns the company to profitability, and he’ll transition out of the CEO role afterward.

“It’s an acknowledgment that I’ve been doing this for 10 years, but execution hasn’t been perfect,” Garg said. “I hope it gets resolved. I think the future still remains very bright for Better.”

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Luigi Mangione pleads guilty in federal case, admits shooting Brian Thompson

▶ Watch Video: Luigi Mangione pleads guilty to federal charges in killing of Brian Thompson Luigi Mangione entered a guilty plea in his federal case at a court appearance in Manhattan Friday morning, admitting to the judge that he shot and killed UnitedHealthcare CEO Brian Thompson outside a Midtown hotel in 2024.Mangione, 28, faced both federal and state trials in New York for the deadly shooting. He had previously pleaded not guilty in both cases.Sentencing in the federal case will take place on Dec. 18, with Mangione facing a maximum possible sentence of life in prison.His state trial is currently set to begin in September. Mangione's defense team said they've filed for state charges to be dismissed under New York's double jeopardy law, and the Manhattan DA's office said they're prepared to fight their move for dismissal. What happened in courtThompson's family arrived in the courtroom at around 10:50 a.m. The hearing, which had been set to start at 11 a.m., got started a bit late. The courtroom had filled press personnel as well as about two rows of members of the public. Mangione entered the court at around 11:10 a.m. with his feet shackled and his hands behind his back. He was wearing tan prison clothing with a white T-shirt underneath. Just before 11:15 a.m., Mangione's defense team told the judge Mangione "is prepared to plead guilty to the indictment at this time." The judge asked Mangione if that was correct. "Yes," Mangione told the judge. The judge then asked Mangione a series of questions about his background and use of medications and drugs. The judge then found Mangione to be fully competent to enter the plea. The judge told Mangione that the maximum possible sentence is life in prison followed by supervised release. The judge added that there's no parole in the federal system, although good behavior and other programs can impact how long he will spend in prison. He will be required to serve 85% of the sentence, the judge said. The judge pointed out that there's no plea agreement between the defense and prosecution, and Mangione's defense attorney said that's correct. Mangione's admission in courtMangione then told the court in his own words what he did. He told the court that he had for years endured severe pain for a broken back and had navigated the health insurance system. He told the court he learned about the UnitedHealthcare annual investor conference in New York even though it wasn't publicized, and traveled to it. He told the court he posed as an investor to find out more information about the conference. He told the court he used a 3D printer to make parts of the gun, and traveled to New York with the gun, silencer, and magazine with "the intent to shoot Brian Thompson." He said he shot Thompson in Manhattan knowing it would place him in fear of death or serious bodily injury. Prosecutors then spoke in court, reviewing the evidence against Mangione. They pointed to video capturing the shooting, as well as Mangione fleeing the scene on the bicycle, his arrest in Altoona, Pennsylvania, the recovered pistol and shell casings, as well as DNA found at the crime scene. Prosecutors said entries in Mangione's notebook expressed his desire to kill a health care executive. "Mr. Mangione, how do you now plead to counts one and two of the indictment," the judge asked. "Guilty," Mangione said. "I will accept your guilty plea," the judge said. About the chargesMangione initially faced four federal charges in Thompson's killing. Two of those charges against him, one of which brought the possibility of the death penalty — murder through use of a firearm and an additional firearms charge — were dismissed earlier this year, and federal prosecutors said they would not appeal that decision.That left federal stalking charges against him, which brought the possibility of life in prison without the possibility of parole.Jury selection in the federal case had been set to begin in January. Speculation about a possible plea deal had been rampant since Tuesday, when prosecutors and Mangione's defense team sent a letter to the court requesting a Friday conference regarding the federal case.Luigi Mangione's state trial and double jeopardy concernsMangione's attorney Karen Friedman Agnifilo spoke after Mangione entered his guilty plea to federal charges. "Despite this being a single isolated event, Mr. Mangione has been unfairly treated since the outset in every way, and has successfully fought off terrorism charges and the death penalty, while also fighting at the same time two simultaneous prosecutions in two jurisdictions who are trying to punish him twice for the exact conduct," Agnifilo said. "New York law does not permit a person to be prosecuted and punished twice for the exact same crime under a statute that covers successive prosecutions, it's also known as the double jeopardy law."Today's guilty plea triggers this statute, and we just filed our motion in state court explaining why the state charges must be dismissed under New York's double jeopardy protections," Agnifilo said. Manhattan District Attorney Alvin Bragg's office released a statement after the guilty plea saying they're going to fight to keep their prosecution going. "Since December 2024, the Manhattan D.A.'s Office has been tirelessly preparing to pursue a trial conviction in New York State Supreme Court for the alleged cold-blooded murder of Brian Thompson. We are encouraged that Mr. Thompson's family received a measure of accountability today.  While federal sentencing is pending, we are prepared to litigate the defense motions. The Manhattan D.A.'s Office remains committed to seeking justice for Mr. Thompson and his family," a spokesperson for the Manhattan DA's office said. Mangione's state trial is set to begin in September.The state case, in which he faces second-degree murder charges, among others, also carries with it the possibility of life in prison.Double jeopardy refers to a law stating "a person may not be twice prosecuted for the same offense," although there are a number of exceptions. "Luigi Mangione's defense team had made that argument in the state case prior, and this could revive it, because if you actually have a conviction on the federal case, it's a more robust double jeopardy protection in the New York state case. So we could see a motion there that could kick this state case back," CBS News legal contributor Caroline Polisi said on "CBS Mornings" Thursday. Legal expert Rich Schoenstein, however, said he thinks the double jeopardy argument is "open and complicated and subject to debate." Schoenstein said that's because the federal charges Mangione is pleading guilty to are related to interstate matters and stalking, which are quite different than the second-degree murder, weapons and forged instrument charges he's facing on a state level. "So the weapons and forged instrument charges would not be resolved by the federal plea, and arguably the intentional killing charge would not be resolved. I do think there's a serious question as to whether this would be double jeopardy," Schoenstein said.The plea deal, however, may "put some pressure" on New York prosecutors to reach a deal too, "and therefore it could resolve the case on a negotiated level." Thompson family reactsThe family of Brian Thompson released a statement following the guilty plea. "Today's guilty plea marks an important step toward justice for Brian and for our family. While nothing will ease the pain of losing him, we are grateful that the federal justice system has held the person responsible for this heinous act accountable. Now we look to the court to ensure that sentencing reflects the severity of this crime. We remain mindful that additional proceedings in New York and Pennsylvania are still to come, and we will continue to seek the justice Brian deserves." Evidence in the Luigi Mangione caseKey evidence seized during Mangione's Pennsylvania arrest had been expected to be admitted in the federal trial, including a 3D-printed handgun, loaded magazine, a notebook and more.Thompson, 50, was killed on Dec. 4, 2024, as he arrived at a hotel for UnitedHealth Group's annual investor conference. The killing  of the husband and father of two was caught on surveillance video, which showed Thompson being shot in the back as he walked down the street. Police say the words "delay," "deny" and "depose" were written on the ammunition, echoing a phrase used to describe how insurers avoid paying claims.Thompson's killing set off a frantic multistate manhunt that ended with Mangione's arrest at a McDonald's in Altoona, Pennsylvania, five days later.This is a developing story. Check back soon for more information. 
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