WeWork’s former CEO and co-founder, Adam Neumann, received a substantial exit package from SoftBank last September, including a $185 million consulting deal, when he stepped down amidst a series of controversies. However, WeWork’s executive chairman, Marcelo Claure, suggested that Neumann may have violated the terms of this contract, rendering it invalid.

Allegations and Uncertainty

During a recent virtual event hosted by The Wall Street Journal, Claure hinted that Neumann’s actions may have breached the consulting agreement’s terms, casting doubt on its continued validity. While Claure did not specify the alleged violations, citing an ongoing lawsuit regarding Neumann’s departure package, he acknowledged Neumann’s past contributions to WeWork during SoftBank’s intervention to rescue the company.

Lack of Response

Despite requests for comment, WeWork, SoftBank, and Neumann’s spokesperson remained silent on the matter. Neumann’s exit package also included the option to sell nearly $1 billion of WeWork stock to SoftBank and a $500 million credit line. However, Neumann filed a lawsuit against SoftBank in May, accusing the Japanese bank of altering the terms of the stock purchase agreement without his consent.

Background and Controversy

SoftBank assumed control of WeWork in October 2019 after Neumann’s failed attempt to lead the company through a public offering. The deal involved Neumann’s resignation, a significant investment from SoftBank, stock buybacks, and acquiring a substantial portion of WeWork’s shares. This move came after WeWork’s valuation plummeted by over 80% due to financial woes, governance issues, and concerns over the company’s culture under Neumann’s leadership.

As the legal battle over Neumann’s exit package unfolds, questions persist regarding the validity of his consulting contract with WeWork and the implications for both Neumann and the embattled company’s future.