Better Home & Finance faces class action lawsuit over share price decline

Better Home & Finance (BETR) is facing a securities class action lawsuit following a dramatic revision of its growth outlook. The legal action, initiated by the firm Hagens Berman, follows a 28% decline in the company’s share price on May 7, 2026, after the firm reported that its first-quarter net losses had surged 75% sequentially.

In March 2026, the company’s leadership had projected that Better Home would achieve $1 billion in monthly loan volume by May. However, by May, the firm disclosed that conversion rates were falling due to broader macroeconomic pressures, leading to a significant downward revision of its production targets. Following these disclosures, the company parted ways with its CEO.

The lawsuit alleges that the company failed to disclose that its internal conversion funnel was already struggling under market conditions at the time it made optimistic projections to shareholders. Legal counsel is investigating whether these management assurances violated federal securities laws.

Investors who purchased Better Home stock between March 13, 2026, and May 7, 2026, and suffered significant losses, have until November 20, 2026, to apply for the role of lead plaintiff.