It is alleged that WeWork is being investigated by the New York State Attorney. According to Reuters, NYAG's questions about WeWork founder and former CEO Adam Neumann include engaging in self-trading.
A spokesman for WeWork said in an email that "we have received a request from the New York State Attorney's Office and are working on the case." TechCrunch also contacted the New York State Attorney General's office for comment. headquartered in New York City.
This comes less than a week after Bloomberg reported that WeWork is subject to a US Securities and Exchange Commission requests for potential breaches related to the canceled IPO.
WeWork's parent company, The We Company , announced September 30 that it is withdrawing its S-1[ads1] filing for an initial public offering shortly after Neumann resigned as CEO, in addition to questions about the company's financial condition, including red flags for investors that Neumann had borrowed against his WeWork shares and leased property he owned back to the company.
A unit Neumann also controlled sold the company the right to to use the word "We" for $ 5.9 million, though he later asked the company to relax the deal and returned the money after public criticism.
After receiving a lifeline from investor SoftBank worth up to $ 8 billion, WeWork is now pursuing major cost-cutting measures, including layoffs with Meetup, which it acquired for $ 200 million in 2017.