WeWork is reportedly being investigated by the New York State attorney general.
The attorney general is looking into whether WeWork founder and former chief executive Adam Neumann engaged in self-dealing, according to Reuters.
A WeWork spokesperson said: “We received an enquiry from the office of the New York State attorney general and are co-operating in the matter.”
Neumann owns some buildings leased to WeWork, which could create a conflict of interest given that if those buildings were to raise their rents, Neumann could stand to benefit.
The news comes after WeWork pulled the plug on a planned IPO in September when investors reportedly baulked at the valuation put on the business by investment banks running the deal.
While past investments in the co-working company had valued it at as much as $47bn, the valuation today is said to be around $8bn.
Neumann stepped down as chief executive before the IPO was scrapped as We Company attempted to get a stock market debut back on track.
He is now non-executive chairman of the board, while Artie Minson, formerly WeWork’s co-president and chief financial officer, and Sebastian Gunningham, formerly vice chairman, have become co-chief executives.
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