- A former employee is taking WeWork to court against cofounder Adam Neumann who reported the $ 1.7 billion golden parachute. minority shareholders as their actions "eviscerated" the value of WeWork's stock and stock options.
- "It is unclear why Neumann was paid $ 185 million to provide strategic guidance to the company when his & # 39; guidance & # 39; resulted in the virtual destruction of the company," the lawsuit alleges. , referring to consulting fees reported as part of Neumann's leave package.
- Read more about Business Insider's WeWork coverage here.
A former employee takes WeWork to court cofounder Adam Neumann's reported $ 1.7 billion golden parachute.
Natalie Sojka sued accused Neumann and other WeWork directors of benefiting themselves from e xpense of minority shareholders, breach of their duty of assurance, creating corporate waste, unfairly enriching their self, abuse of control, among other failures. The suit, filed in San Francisco Superior Court this week, also named SoftBank CEO Masayoshi Son as a defendant.
As part of SoftBank's acquisition of the fact that it was following the public list, Neumann was set to receive nearly $ 1 billion for his WeWork shares, $ 500 million in credit to pay off personal loans, and $ 185 million in consulting fees, according to the Wall Street Journal.
"Despite breaching his enforcement duties by engaging in a self-dealing WeWork mismanaging and mismanaging his IPO Must recover, Neumann was offered a staggering $ 185 million consulting fee despite the fact that SoftBank seems to admit Neumann ruined the Company, "the lawsuit alleges.
"It is unclear why Neumann was paid $ 185 million to provide strategic guidance to the Company when his & # 39; guidance & # 39; resulted in the company's virtual destruction," the lawsuit states. "The charge represents only Neumann's self-dealing and improper personal payments," it said.
WeWork, SoftBank, and the law firm representing Natalie Sojka did not immediately respond to requests for comment.
"WeWork believes this indictment is unfit," a spokesperson told Reuters on Friday.
Sojka worked as an executive assistant after a team led WeWork for a 17-month period, according to his LinkedIn profile. He received stock and stock options during his time there, and when he voluntarily resigned, he exercised options to buy more stock after being told he would lose them otherwise, according to the indictment.
Neumann's reported departure is "substantially fair" and will cause "significant harm" to minority shareholders as the value of their stock and stock options is "eviscerated due to Neumann's guilt" , "the lawsuit alleges.
Sojka seeks an injunction to prevent Neumann's departure. and suggested a class action lawsuit for him and other minority shareholders.