Adam Neumann , the controversial co - laminitis and former chief executive of spectacular startup failure WeWork , is litigate Softbank over that failedmultibillion - dollar bailout dealand claims that the company breached the terms of their agreement in doing so .
The courting , which was filed this week in Delaware ’s Chancery Court , fence that Softbank breach the term of the agreement by failing to buy up $ 3 billion Charles Frederick Worth of WeWork shares for at least $ 19 per share . Additionally , the suit accuses Softbank and its Vision Fund of “ abuse of power ” for their response to aseparate lawsuitby a special citizens committee of WeWork ’s board of director over the fail sight by asking that the panel discover the citizens committee was “ not authorized to file the suit on behalf of WeWork . ”
“ In real time , [ Softbank Group ] and [ Softbank Vision Fund ] are mistreat their control of WeWork in an effort to stop the especial commission ’s meritorious lawsuit from being heart , ” the suit alleges .
Photo: Getty
Softbank took control of WeWork last twelvemonth as part of an October lot that discover Neumannagree to abuse downas WeWork ’s chairman of the board . Softbankpulled the plugon the $ 3 billion legal tender offering — and notably , specifically on buy up virtually $ 1 billion in stocks held by Neumann — earlier this twelvemonth , quote investigating into the fellowship ’s business practice . But the complaint argues that Softbank renegue on on its commitment to the tender fling as a result of itspoor fiscal standing .
The courting is asking that the court order Softbank to finish its stamp fling as well as pay out extra monetary relief to Neumann . WeWork declined to annotate on Neumann ’s courtship against Softbank .
Softbank did not forthwith return a request for comment . However , the companionship was cited byAxiosas saying that it “ will vigorously represent itself against these meritless claim . Under the terms of our agreement , which Adam Neumann signed , SoftBank had no debt instrument to make out the tender offering in which Mr. Neumann — the biggest beneficiary — sought to sell nigh $ 1 billion in stock . ”
Wo n’t somebody please guess of Adam Neumann and his penchant fortequila parties .
WEWORK
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