In the Loop: WeWork Woes and Regus

In the Loop
WeWork members have hired a lawyer to demand the coworking company stop collecting fees on locations that are closed due to the coronavirus.

WeWork Members Hire Lawyers to Stop WeWork from Collecting Payments

WeWork’s woes continue to mount. The Commercial Observer reported earlier this week that “a group of WeWork members hired a high-profile lawyer to demand the coworking giant stop collecting membership fees during the coronavirus pandemic that has rendered them unable to use the space.” If the coworking company continues to demand payment from members, the hired lawyer could start an arbitration process. The news source also reported that some WeWork members are considering class-action lawsuits against the coworking company. 

Adam Neumann Sues SoftBank

Several news sources reported this week that WeWork’s co-founder, Adam Neumann, has filed a lawsuit against SoftBank, for pulling out of a $3 billion tender offer for WeWork shares. The lawsuit was filed in Delaware Court of Chancery and, according to sources, “ included a motion to consolidate his case with a lawsuit filed last month by a Special Committee of WeWork’s board.” In the lawsuit, Neumann accuses SoftBank of “abusing its power” to “renege on its promise to pay for the benefits it already received.”

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    Regus Backs out of 15-Year Lease with Vornado

    Bisnow reported this week that “Vornado Realty Trust says it has begun legal action against Regus, alleging the coworking giant is trying to back out of a 15-year lease and a $90M guarantee.” According to the report, Regus was to occupy all of 345 Montgomery Street in San Francisco for a space called Spaces The Cube. The lease was signed in 2018 and Regus backed out late last year (2019). Despite Regus backing out, Vornado has reportedly continued with the redevelopment work at the location. 

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