WeWork brought to US SEC under possible rule violations

November 26, 2019
Share this Post: 

WeWork ex-boss and other officials running the flexible office space aggregator are being used by minority shareholders who are accusing the company's Board of Directors of breaching its fiduciary duties. 

WeWork is facing scrutiny from the US Securities and Exchange Commission over whether it violated financial rules in the run-up to its abandoned initial public offering, Bloomberg reported, citing two people with knowledge of the matter.

The SEC's inquiry is preliminary and may not lead to any allegations of wrongdoing, Bloomberg reported, adding that it could not determine whether specific WeWork business decisions or transactions prompted the review.

WeWork shelved its IPO in September after investors grew wary of its mounting losses, a business model with high leasing liabilities and corporate governance that forced former Chief Executive and Co-Founder Adam Neumann to resign.

Neumann and other WeWork officials are also being sued by minority shareholders who accuse the company's Board of Directors of breaching its fiduciary duties.

Masayoshi Son, Chairman of SoftBank Group which took control of WeWork last month, is also one of the defendants in the case.

Read more here

Join us February 26-27 for the Property Portal Watch Conference Bangkok 2020.

Read more

November 26, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Nils K
Ringier's Nils Körber on ArtificiaI Intelligence, Training the Machine, and Talking about Problems

"What would you do with one million interns?" The award for the best question at the PropTech and Portal Watch...

Read More
Untitled Design 13
As OnTheMarket Hits 15,000 Advertisers, Zoopla Fights Back with Big Agency Deal

The British property portal Zoopla has announced a new long-term listings deal with Dexters, one of London's top agencies with...

Read More
Untitled Design 12
LeBonCoin Suffers Data Leak and Boliga Comes Under Cyber Attack on Same Weekend

LeBonCoin, the leading French horizontal marketplace owned by Adevinta, has acknowledged that some of its users' personal information was exposed...

Read More
Number 2S Challenging Hero Image 2
Analysis: Can Zoopla, Realtor.com and Domain See Off Challengers and Close the Gap to Market Leaders?

Well-funded challenger portals have been generating a lot of headlines in the industry recently. CoStar has been explicit about its...

Read More

Editor's Pick