- Disgraced ex-WeWork CEO Adam Neumann reportedly intends to sue the coworking firm’s major backer, SoftBank, for reneging on a $US3 billion offer to buy WeWork shares.
- That’s according to a letter seen by Bloomberg, which was sent by SoftBank’s lawyer to the board of We Company, WeWork’s parent firm.
- In the letter, SoftBank’s lawyer stated: “Adam Neumann has also said that he intends to file a complaint.”
- It’s thought that Neumann, who hoped to sell up to $US970 million in shares as part of the abandoned offer, has had his lawyers send a letter of their own to SoftBank.
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The long-running saga between Adam Neumann and SoftBank is far from over.
The disgraced former WeWork CEO reportedly intends to sue SoftBank, after it rowed back on a $US3 billion offer to buy WeWork shares.
That’s according to a letter seen by Bloomberg, which was sent by SoftBank’s lawyer to the board of We Company, WeWork’s parent firm.
The letter, from SoftBank’s lawyer, reportedly states: “Adam Neumann has also said that he intends to file a complaint.”
Neumann was ousted from WeWork in September 2019 after the firm’s IPO fell apart, but was due to benefit from SoftBank’s subsequent share purchase scheme to the tune of almost $US1 billion.
SoftBank abandoned the share-purchase offer in early April, claiming that it would be “irresponsible” to continue with the agreement. The investor cited multiple investigations taking place into WeWork over alleged civil, criminal and financial matters.
In the letter sent last week, SoftBank’s lawyer added that “there is no need for WeWork to allow its cash reserves to be used to finance an expensive lawsuit intended to generate material personal benefits.”
Neumann’s attorneys have reportedly written to SoftBank, Bloomberg reported.
Other members of WeWork’s board have already launched a lawsuit against SoftBank over the same issue. That committee hopes to force SoftBank to go through with its offer, or else compensate the board members for their loss.
The Japanese tech and media giant originally agreed a $US9.5 billion rescue package with WeWork back in October, after the coworking firm became desperately cash-strapped amid questions over its business model and Neumann’s personal conduct.
Business Insider has approached SoftBank for comment.