The New York State Attorney General’s office has launched an investigation into WeWork, Reuters reported.
The embattled office-space company, which is soon set to lay off thousands of workers, confirmed to the news outlet that it had received a request from the state’s AG office, led by Letitia James.
James’ office is reportedly looking into multiple transactions involving former CEO Adam Neumann that were scrutinized for potential self-dealing. One arrangement involved millions of dollars paid to Neumann by WeWork to lease buildings that he owned. Another transaction reportedly being examined is a $5.9 million payment to Neumann by the company to buy from him the trademark “We.”
The inquiry follows a Bloomberg report last week that stated the U.S. Securities and Exchange Commission had launched a separate probe into WeWork, and pointed to the same transactions as potentially being examined by the agency. [Reuters] — David Jeans