WeWork To Vote On Two New Directors Following Lawsuit
A lawyer for WeWork has told Delaware Chancery Court Judge Andrew Bouchard that the company will be voting on appointing two new directors this week.
So far, the nominees are General Electric’s ex-top lawyer Alex Dimitrief and former chief financial officer for Convergex Group Frederick Arnold.
This news comes on the heels of the lawsuit between the coworking company and its largest shareholder SoftBank Group. Two independent WeWork directors, including Bruce Dunlevie, a partner at the venture firm Benchmark Capital, sued the Japanese conglomerate after it walked away from its $3 billion tender offer to buy back shares from shareholders that was intended to be part of a bailout deal for the coworking firm.
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The new directors are expected to be at odds with those who filed the suit. In fact, Bouchard recently rejected Dunlevie and Frankfort’s bids to block WeWork from adding new directors and creating a new board committee.
“We believe SoftBank has no basis to question the special committee’s authority to bring this action and we are pleased by the court’s recognition that any effort by SoftBank to challenge that authority must be presented,” said a spokesman for Dunlevie and Frankfort.
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