All of this is more or less fine while the company is valued at billions of dollars. But you're right, I'm not exactly sure about the legal angle. The biggest loser, besides the unfortunate employees, is SoftBank. I don't think there is a case to be made by SoftBank, as they encouraged Neumann's behaviour, but the employees may have strong grounds for a case.
Imagine working at a company, that has these gigantic valuations, and you hold stock in this company. Since you probably don't have the insights to the actual finances of the company you, like everyone else, base the company's valuation on the private market. Then only to find out that your shares you thought were worth $100, are now worth $15 (except much worse).
In the meantime, your CEO walks away with over a billion dollars in his pocket on a handshake deal to basically shut up and leave.
I would be furious if I was an employee that dedicated time and energy to this company.
I guess it's a lesson. Never personally invest yourself into any company, since - as just a foot soldier - you have zero control over the events.
Even if you have a chance to get your walkaway money, it's just a job. They pay you for your skills and your talent, not your personal life. Be involved, be professional, care, but do not get personally attached.
What you bring from a job is learning experience and new friendships, but the job itself should be viewed as a pretty ephemeral concept. Never fall for the "we are a family" line - it's incredibly hard to be fired from a "family".
What about those employees that did sell some stock at high valuations though?
Some employees were indeed able to sell shares twice along the way, just like Neumann was. The most recent sale opportunity, in January 2019, offered employees $54 per share if they sold their equity to SoftBank, WeWork’s largest outside shareholder, according to WeWork’s financial prospectus, at an overall valuation of around $23 billion.
Not everyone was eligible to sell, nor did everyone take that opportunity. Those who did are, with the benefit of hindsight, thankful.
If your a shareholder you can get the financials of the company assuming wework was a Delaware Corp. Exercise 1 share of your options to become a shareholder.
> All of this is more or less fine while the company is valued at billions of dollars.
It's still valued at billions of dollars. The absolute valuation is irrelevant. As another article I read said, building an $8 billion company out of $10 billion of investment is not an especially great achievement. In particular, it is not similar to building an $8 billion company out of $10 million of investment.
Sure. Could have clarified that what I meant was "It is more or less fine while it is working." When the valuation goes under the amount invested, I'd say that is no longer the case. That is, while everything is going well no one thinks to file a lawsuit. Appreciate your correction nonetheless.
