WeWork co-founder and former CEO Adam Neumann sued SoftBank Group Corp.
Civil suit, filed in Delaware Chancellery Court, is the latest legal dispute over the multi-billion dollar bailout of Soft Co. by We Co., the parent company of WeWork, and puts an end to the dramatic fall from SoftBank founder Masayoshi Son and Neumann.
in April ended an offer to pay up to $ 3 billion worth of WeWork shares, saying the conditions to close the sale were not met until the April 1 deadline. As part of the deal, which led to the removal of Neumann from the company’s board of directors, Neumann had the right to sell up to $ 970 million in shares to SoftBank.
SoftBank, in withdrawing from the agreement, cited “multiple pending new and significant criminal and civil investigations” which it said began after the October agreement. SoftBank said the authorities, without specifying which authorities, had requested information about WeWork’s funding activities and its business relationships with Neumann. Neumann said SoftBank’s decision was motivated by its own precarious financial situation and made after it failed to obtain approval from Neumann and others to change the timing of the takeover bid.
An extended version of this report appears on WSJ.com.
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WeWork co-founder Adam Neumann is suing SoftBank for a failed $ 3 billion deal.