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WeWork co-founder charges SoftBank for electricity abuse

Last year, SoftBank pledged to buy $ 3 billion in shares in the WeWork office group’s multi-million dollar rescue package.

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WeWork co-founder charges SoftBank for electricity abuse
WeWork co-founder charges SoftBank for electricity abuse

Adam Neumann, co-founder of WeWork and the former managing director accused Japanese technology giant SoftBank of violating a deal provision that gave the group control of WeWork.

SoftBank pledged to purchase $ 3 billion in WeWork shares as part of the multi-billion dollar bailout rescue package last year.

In early April, however, Masayoshi Son, owner of the SoftBank group, announced that he would not be making this purchase to ensure that the conditions for completing the process were not met.

He said at the time that he had “no choice” but to abolish the bailout because WeWork had failed to meet various conditions. He also raised concerns about “multiple, significant new criminal and civil investigations”.

In his lawsuit, Neumann, who had the right to sell $ 970 million of shares, accused SoftBank of abuse of power and “steps to undermine the business,” including lobbying investors of the joint ventures. from WeWork in Asia. The Japanese group, for its part, denies the allegations and assures that “it is a desperate attempt to rewrite the agreement”.

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