Better Home & Finance Faces Securities Class Action Amid Increased Losses and Lowered Loan Volume Prospects
Better Home & Finance (NASDAQ: BETR) is facing a securities class action lawsuit following a 75% sequential increase in its net loss and significantly reduced outlook for loan origination volume.
San Francisco – Better Home & Finance (NASDAQ: BETR) is now subject to a securities class action lawsuit after reporting a substantial increase in its net loss and failing to meet prior loan volume projections. The company’s first-quarter 2026 net loss rose 75% from the previous quarter and 39% year-over-year.
In early May 2026, the company also drastically lowered its outlook for loan origination volume. Prior assurances of reaching $1 billion in monthly loan volume by May 2026 were significantly revised downwards. The news prompted Better Home's stock price to fall over 28% on May 7, 2026.
The company subsequently fired its CEO. Shareholders' rights law firm Hagens Berman has launched an investigation into allegations that Better Home violated federal securities laws. The firm is urging investors who suffered substantial losses between March 13, 2026, and May 7, 2026, to submit their claims.
The lawsuit centers on the company's previous statements to investors regarding its ability to achieve $1 billion in monthly loan volume and reach adjusted EBITDA breakeven. Investors learned the truth on May 7, 2026, when Better Home reported weak first-quarter results and acknowledged that conversion rates were declining due to macroeconomic factors, leading to a substantial miss on its previously stated volume targets.