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Dandar Woo
in
Legal
November 19 20:43

WeWork is currently under investigation by the NYAG

Reuters informs that NYAG is making inquires whether Adam Neumann, WeWork former CEO was involved in self-dealing
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A WeWork representative reported that "NYAG has sent a request regarding the issue and they are jointly working on it." WeWork headquarters are located in New York.
This occurred a few days following a report that the company was the subject of a US SEC investigation. The inquiry was in regard to possible infringements of regulations concerning its IPO withdrawal.
The We Company, which owns WeWork, claimed in September that it was cancelling its application for an IPO soon after Neumann resigned as CEO. As it turned out, former CEO had borrowed from WeWork stock and leased the assets he possessed back to his company. This news became another red flag for investors, as well as concerns regarding Wework’s financial condition.
The parent company as well sold the subsidiary the right to use the word “We” for US$ 5.9 mln, however, Neumann annulled that contract and refunded WeWork after being publicly criticized.
Having received a financial support from SoftBank in the amount of approximately US$8 bln, WeWork is currently involved in radical cost-cutting measures, such as job cuts at Meetup, which it purchased for US$200 mln.