It has been reported that WeWork is under investigation from the New York State Attorney General. There are reports that the questions from the NYAG include the possible self-dealing by founder and ex-CEO of WeWork Adam Neumann.
A spokesperson of WeWork has said in an email that an inquiry has been received by them from the State Attorney General’s office and the company which provides office sharing spaces has been cooperating with the authorities in this matter. There were no comments on the same by the office of the NYAG as of now. The headquarters of WeWork are located in New York City.
This has happened less than one week after the company had been made a subject of an inquiry from the Securities and Exchange Commission in United States for the violations potentially of rules in the relation to their cancelled IPO.
The parent company of WeWork, We Company had announced on the date 30th of September that it is going to withdraw its Initial Public Offering filing soon after Neumann had left his role as the CEO of the company. There were further questions about the state of the company financially and there were also red flags for the investors which included that the ex-CEO had borrowed against the shares of WeWork which he had and had also leased properties which he owned back to WeWork.
An entity which was controlled by Neumann had also sold the right of using the “We” word for an amount of $5.9 million however he had later asked this company for the unwinding the agreement and had returned this money after the criticism he received from public.