WeWork’s Adam Neumann sued over £1.3bn leaving package
A shareholder at American commercial real estate giant, WeWork, has taken the firm to court over the £1.3bn leaving package approved for ousted co-founder Adam Neumann.
The shareholder’s lawsuit argues that the money granted to Neumann was “improper” and that the decision was “beyond comprehension”.
Natalie Sojka’s accusation also accuses WeWork’s investor, Softbank, of abusing their control of the company by signing off this deal at the expense of the firm’s smaller shareholders. WeWork claimed the lawsuit as “meritless”.
This is the latest instalment in the series of controversies the company has faced. WeWork, who provide shared workspaces for technology startups, entrepreneurs and global enterprises, reported a loss of £750m for the first six months of 2019.
However, the company still planned on going ahead with their plans to list on the stock market on Wall Street later this year. They initially planned on going to Wall Street in September, and are still rumoured to list by the end of the year after announcing a double increase in revenues to £1.27bn.
Since the company was founded in 2010, it is yet to report a profit, however, it has expanded into 528 locations in 111 cities across the world.
The lawsuit marks the latest controversy regarding Neumann’s relationship with the company. He stepped down as chief executive in September, after the company’s efforts to raise money through a stock market flotation collapsed, in part due to questions over his leadership and the future direction of the company.
Sojka plans on a class-action lawsuit in California along with other minority shareholders.