WeWork co-founder Adam Neumann sued SoftBank Group Corp., its biggest investor, over the Japanese company’s decision to scuttle a US$3 billion deal to buy stock from employees and other shareholders.
SoftBank relied on legally faulty pretexts to renege on its agreement to purchase the shares from Neumann and other We Co. holders as the conglomerate’s financial position weakened, Neumann said in a lawsuit submitted to Delaware Chancery Court that was reviewed by Bloomberg. The suit couldn’t immediately be confirmed on the court docket.
Neumann contends that while SoftBank was obligated under the purchase agreement to use “its best efforts” to complete the tender offer, it was “secretly taking actions to undermine it,” according to the copy of the complaint.
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