WeWork Cos. and co-founder Adam Neumann reached a legal settlement with SoftBank Group Corp. that will cement control of the embattled real estate startup with its largest investor and send the former chief executive officer on his way with a financial windfall.
The pact announced Friday ends a legal fight over a stock transaction that collapsed and eliminates the need for a March 4 trial in the U.S. state of Delaware. Terms of the settlement weren’t disclosed.
According to people familiar with the agreement, Neumann will give up for a year his role on the board of the co-working company he helped create, while cashing out roughly $480 million (¥51.1 billion) in stock to SoftBank. Additionally, SoftBank will pay Neumann $50 million to cover legal fees and another $50 million as part of a noncompete fee he was previously promised and will give him a five-year extension on a $430 million loan he owes the Japanese investor.