Tuesday, May 21

Tag: deal breach

WeWork sues SoftBank for backing out of $3 billion Investment deal
BUSINESS

WeWork sues SoftBank for backing out of $3 billion Investment deal

Coworking organization WeWork sued Japan-based SoftBank after the technology investment group breached its contractual obligations by backing out of a USD 3 billion investment deal. The lawsuit filed in a US court in Delaware came just days after SoftBank said it was backing out of the plan to purchase WeWork shares to shore up the finances of the struggling sharing economy giant. WeWork's board of directors called the SoftBank action "a clear breach of its contractual obligations" under an agreement between the two firms last year as well as a breach of SoftBank's fiduciary obligations to the firm's current and former employees who were to sell their equity. The complaint alleges SoftBank yielded to pressure from "activist investors" and made the move after it had "received most...