WeWork brought to US SEC under possible rule violations

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.

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