WeWork special committee files lawsuit against SoftBank after tender offer falls through

REUTERS: The special committee on the board of The We Company, which operates office-sharing startup WeWork, filed a lawsuit against its largest shareholder SoftBank Group Corp on Tuesday, challenging its decision to terminate a US$3-billion tender offer.

Earlier in April, SoftBank said it had terminated the tender offer for additional WeWork shares agreed last year with shareholders, plunging the startup further into crisis.In the lawsuit, which was widely expected after the tender offer fell through, the special committee called SoftBank's decision to terminate the tender offer"wrongful" and alleged that SoftBank had breached its obligations under the master transaction agreement .

"SoftBank's failure to consummate the tender offer is a clear breach of its contractual obligations under the MTA as well as a breach of SoftBank's fiduciary obligations to WeWork's minority stockholders, including hundreds of current and former employees," the special committee said in the statement.

The tender offer, which would have mostly benefited a select group of shareholders, including ousted co-founder Adam Neumann, had been agreed in October as part of a bailout plan by SoftBank after WeWork's IPO plans imploded. Investors have been concerned about the company's losses, Neumann's leadership style and a business model that involves taking long-term leases and renting out spaces for a short term."The Special Committee is seeking specific performance requiring SoftBank to complete the tender offer or, in the alternative, compensatory damages for SoftBank's breaches of contract and fiduciary duty," the special committee said.

Singapore Latest News, Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

The Jason Hahn Files: Coping With Staying At Home, One K-Drama At A Time
Source: TODAYonline - 🏆 1. / 99 Read more »

Alaska air carrier RavnAir files for bankruptcy as US Treasury mulls grantsRavnAir Group, the largest regional carrier in Alaska, filed for bankruptcy Sunday and grounded all of its 72 planes as it waits on a decision from U.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Pakistan police clash with doctors protesting lack of virus protection gearRiot police wielding batons used force to break up a protest by Pakistani doctors and medical staff against a lack of gear to protect against ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Bill to allow special arrangements for General Election during COVID-19 outbreak introduced in ParliamentSINGAPORE: Voters who are in quarantine or under stay orders due to COVID-19 will be able to vote outside of their electoral districts in the ... This doesn't mean that elections would be held soon. Just means that we are planning for rules to hold the GE safely in case the outbreak lasting till Apr 2021. That’s why they give not one, not two but three relief packages cuz they want the ge now and to get majority vote while things are still hot off the oven Will have to happen by early next year. World recession already. Singapore need a government in place to get Singapore through COVID-19 and plan recovery. Tough times ahead.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Coronavirus: Grab and Gojek offer drivers rental discountsPrivate-hire drivers offering their services through the Grab and Gojek platforms will be getting partial rental waivers over the next four weeks.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

Snapask and SPH to offer free e-learning service and news content for Singapore studentsSINGAPORE - Students moving to home-based learning on Wednesday (April 8) amid the coronavirus pandemic will be able to get free access to an e-learning service, as well as news content under a tie-up announced on Tuesday.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »