New York Attorney General Probes WeWork Over Former CEO's Self-Dealing
The New York State Attorney General investigates whether former WeWork CEO Adam Neumann engaged in self-dealing, adding to the company's ongoing legal troubles. WeWork confirms it is fully cooperating with the inquiry.
The New York State Attorney General investigates WeWork over whether former CEO Adam Neumann engages in self-dealing. WeWork, which is headquartered in New York City, confirms that it receives an inquiry and cooperates fully with the investigation. The Attorney General's office declines to comment on the ongoing probe.
This investigation follows a recent U.S. Securities and Exchange Commission inquiry into potential rule violations related to WeWork's cancelled initial public offering. Red flags for investors include Neumann borrowing against his company shares, leasing his personal properties back to WeWork, and selling the company the trademark rights to the word "We" for $5.9 million.
After Neumann steps down as CEO and the company withdraws its S-1 filing, investor SoftBank provides a lifeline of up to $8 billion. Now, WeWork focuses on major cost-cutting measures to stay afloat, including layoffs at Meetup, a company it acquires for $200 million in 2017.