To make matters worse for the already gruesomely beleaguered WeWork, a Reuters report now states the New York State Attorney General is investigating the company. According to the report, it is ousted founder Adam Neuman’s multiple misdealings while he was at the helm of the company, which are under scanner. While not specifically mentioned, Softbank’s infamous multi-billion bailout could also be under scanner, largely for making Neuman billionaire in the process.
A WeWork spokesperson later confirmed the same to Reuters. In a prepared statement, the spokesperson said, “We received an inquiry from the office of the New York State Attorney General and are cooperating in the matter”. There has been no official comment from either the NYAG office or from ousted billionaire founder Adam Neuman’s office.
According to the report, among the issues the NYAG is examining is whether WeWork’s founder and former chief executive, Adam Neumann, indulged in self-dealing to enrich himself.
Neumann bought properties which he then leased back to WeWork, borrowed against his own stake in the company, and had also planned to charge WeWork almost $6 million to use his trademark of the word “We” after the company rebranded itself The We Company.
The NYAG investigation comes days after a Bloomberg report, that talked about the US Securities and Exchange Commission looking into WeWork.
WeWork’s troubles started when the company withdrew its S-1 filing for an initial public offering, days after Neumann stepped down as CEO.