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New York state attorney investigates WeWork



  • Reuters reported that the New York State Attorney is investigating WeWork in the recent crisis against the Giant Composite Work Area.
  • The company confirmed that it had been contacted by Attorney General Letitia James's office, which reportedly will focus on the activities of WeWork's founder and former chief executive, Adam Neumann.
  • The company has faced problems since it scrapped the initial public offer and approached its largest shareholder for a rescue deal. Major layoffs are expected in the company in the coming weeks.
  • Visit the Business Insiders homepage for more stories.

The New York State Attorney General is investigating WeWork, Reuters reported, in the recent crisis facing the embattled workspace giant.

The poll cited two people who were familiar with the case and said the company confirmed that it had been contacted by State Attorney Letitia James's office.

"We received an inquiry from the office of the New York State Attorney and are cooperating on the matter," a WeWork spokesman told Reuters.

One point of the investigation is whether WeWork's founder and former CEO, Adam Neumann, took advantage of his own profits, including buying property to lease back to WeWork and plans to charge the company nearly $ 6 million to use his trademark for the word "We" for the redesigned The We Company.

The company has faced problems since it scrapped the original offer and took a rescue deal from its largest shareholder, the Japanese technology investment firm SoftBank. Neumann has since resigned as CEO, and the company has laid off a large part of the staff.

The company is expected to lay off thousands of employees as a shooting effort allegedly begins "in earnest" this week.

The report noted that this is not the first time NYAG has investigated the company, as WeWork scrapped its policy of requiring employees to sign incompetent agreements after reaching a settlement with the state attorney last year.

Read more about WeWork coverage:

SoftBank CEO Masayoshi Son told WeWork executives he wants the company to make a profit by 2021

Investors are more skeptical than anyone Once again WeWork will be able to repay the debt [19659006] Read the played email from WeWork Chairman telling employees that layoffs will begin "in earnest" this week

One chart shows how difficult WeWork's income situation is


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