Lender Better faces SEC probe for alleged federal laws violation

(Reuters) -The U.S. Securities and Alternate Fee (SEC) is inspecting whether or not mortgage lender Higher.com and the particular objective acquisition firm it has agreed to merge with, Aurora Acquisition Corp, violated federal securities legal guidelines.

Within the second-quarter of 2022, Higher and Aurora obtained voluntary requests from the regulator for some paperwork and data, Aurora mentioned in a submitting on Thursday.

“We imagine it is a routine request for info, not an inquiry,” a spokesperson for Higher.com mentioned in an emailed assertion.

The SEC requests, cowl amongst different issues, info on the enterprise transactions of Chief Government Officer Vishal Garg and allegations made in a lawsuit towards him filed by Sarah Pierce, Higher.com’s former head of gross sales and operations.

Final month, Pierce filed a lawsuit claiming that Garg misrepresented Higher.com’s statements to make sure buyers undergo with a SPAC merger as a substitute of withdrawing on account of its monetary situation.

Higher.com and Aurora are cooperating with the SEC, the clean verify firm added within the SEC submitting.

The SEC declined to remark and Aurora Acquisition Corp, too, declined to remark past the submitting.

(Reporting by Shivani Tanna and Abinaya Vijayaraghavan in Bengaluru; Enhancing by Rashmi Aich)