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WeWork Sues SoftBank Over Terminated $3B Stock Deal

WeWork says it had filed a lawsuit in the Delaware Court of Chancery against SoftBank Group, which last week terminated a tender offer for up to $3 billion in WeWork shares. The suit charges SoftBank with a breach of contract under an October 2019 Master Transaction Agreement (MTA), and a breach of fiduciary duty to WeWork’s minority stockholders, including current and former employees.

The lawsuit seeks “specific performance requiring SoftBank to complete the tender offer or, in the alternative, compensatory damages for SoftBank’s breaches of contract and fiduciary duty. We are committed to enforcing the terms of the MTA and to ensuring that SoftBank upholds its commitments to WeWork’s minority stockholders.”

SoftBank said it would “vigorously defend” against the suit, which it called “a desperate and misguided attempt now to rewrite that agreement and to rewrite the history of the past six months,” MarketWatch reported.

For comments, questions or concerns, please contact Paul Bubny

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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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