INTERNATIONAL – WeWork officials, including co-founder and former Chief Executive Adam Neumann, are being sued by minority shareholders to recoup losses as the shared workspace provider pulled its initial public offering and saw its value plunge more than 87%.
In a proposed class action filed this week in San Francisco Superior Court, former WeWork employee Natalie Sojka accused the company's board of directors of breaching its fiduciary duties to minority shareholders like her.
The San Francisco resident faulted the board for letting Japan's SoftBank Group rescue WeWork by boosting its stake to a potential 80% from 29% at a "fire-sale" price, and granting Neumann a $1.7 billion exit package.
Softbank and its chairman, Masayoshi Son, are among the 10 named defendants in the November 4 complaint.
"WeWork believes this lawsuit is meritless," a spokeswoman said on Friday. Softbank and outside representatives did not immediately respond to requests for comment. Sojka's lawyer did not immediately respond to a similar request.