• Tue. Jan 18th, 2022

DMC News

We Report As It Is

WATCH: Over 900 staffers FIRED via Zoom exploring class action suit

By

Dec 12, 2021

Better.Com, the online bond company whose CEO dismissed 900 employees during a Zoom call, is facing legal action from the group. According to Business Insider, several law-firms have approached the staffers, offering to assist them in a class action lawsuit against the company.

Chimicles Schwartz Kriner & Donaldson-Smith is reportedly investigating a case against Better.Com for allegedly violating an act which requires that certain companies provide written notice to workers at least 60 days before layoffs.

COMPANY OFFERS FIRED EMPLOYEES HIGHER SEVERANCE PACKAGES

As a measure to avoid the lawsuit, Better.Com has reportedly opted to double the severance packages of staffers that CEO Vishal Garg fired on a three-minute Zoom call.

“They decided to extend the severance period, and it just so happens to have coincided with the WARN Act framework to give employees 60 days notice, so we decided not to pursue it anymore, at least for the WARN Act damages,” an attorney for the firm, Benjamin Johns, told Business Insider.

BACKGROUND: In a Zoom call that has since gone viral on social media, Garg fired the employees, telling them the market had changed, which means they have to cut some expenses. To top things off, Garg, who heads the US-based real estate company, then accused his former employees of  “stealing from our customers” by not being productive.

However, the decision to terminate the employ of 900 people definitely comes as a surprise, particularly because Better.com had received $750 million in funding from investors just days before. Founded in 2016, the company sells bond services for potential homeowners online, promising to help buyers find a rate within seconds and get approved for a bond within minutes. The company is backed by the likes of Japanese investment company SoftBank and the financial services firms Goldman Sachs and Ally.

My heart went out to the 900 employees sacked through Zoom by Vishal Garg. Totally wrong! Do it on a one on one basis. And in person. And not before Christmas and after a $750 mn recent infusion. This is how Corporates get a heartless tag!pic.twitter.com/9aPoFNybKp

— Harsh Goenka (@hvgoenka) December 7, 2021

In the Zoom video, Garg sits at a white table, donning a shirt and a blue vest, and tells the workers that the “challenging decision” is his — and that it’s the second time he has had to lay off workers. 

“The last time I did it, I cried. This time I hope to be stronger,” he tells them.

Leave a Reply

Your email address will not be published. Required fields are marked *