Wework co founder suing Softbank: abuse of power and breach of contract


Xinliang science and technology news at noon on 5th Beijing time, according to foreign media reports, Adam Neumann, co-founder of Wework, launched a new lawsuit to Softbank on Monday, because Softbank originally planned to invest 3 billion US dollars to buy shares of Wework, but it withdrew its tender offer. Neumann believed that Softbank abused its power, violated the contract and abandoned its trust responsibility.
Last month, Neumann sued a special committee of Wework’s board of directors, and now he filed a petition with the Delaware equity court, hoping to bring the two cases together. Both lawsuits are related to the collapse of stock purchase transactions.
On April 1, Softbank terminated its US $3 billion buyback offer because of the impact of the new coronavirus on its business and the failure to meet the terms of the deal.
In October 2019, the two sides reached an agreement that Softbank promised to buy shares from Neumann, benchmark capital and many enterprise employees. If the deal is completed, Neumann will get about $1 billion by selling shares. (Xinghai)