WeWork officials, including ex-CEO Adam Neumann, and SoftBank are being sued by minority shareholders to recoup losses as the shared workspace provider pulled its initial public offering and saw its value plunge more than 87 percent.
In a proposed class action filed last week in San Francisco Superior Court, former WeWork employee Natalie Sojka accused the company's board of directors of breaching its fiduciary duties to minority shareholders like her.
The San Francisco resident faulted the board for letting SoftBank Group rescue WeWork by boosting its stake to a potential 80 percent from 29 percent at a "fire-sale" price, and granting Neumann a $1.7 billion exit package.