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WeWork faces U.S. SEC inquiry over possible rule violations - Bloomberg

WeWork faces U.S. SEC inquiry over possible rule violations - Bloomberg
FILE PHOTO: A WeWork logo is seen at a WeWork office in San Francisco, California, U.S. September 30, 2019. REUTERS/Kate Munsch -
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Kate Munsch(Reuters)
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(Reuters) – WeWork is facing scrutiny from the U.S. Securities and Exchange Commission (SEC) over whether it violated financial rules in the run-up to its cancelled initial public offering, Bloomberg reported on Friday, citing two people with knowledge of the matter.

The SEC’s inquiry is preliminary and may not lead to any allegations of wrongdoing, Bloomberg reported, adding that it could not determine whether specific WeWork business decisions or transactions prompted the review.

The regulator’s enforcement division is reviewing WeWork’s business and its disclosures to investors after media reports showed conflicts of interest and the company’s fundraising, according to the report.

WeWork has retained top Wall Street lawyer Andrew Ceresney, who previously headed the SEC enforcement unit, Bloomberg reported.

WeWork and the SEC declined to comment.

Masayoshi Son’s Softbank Group <9984.T> took control of WeWork last month, leading to the exit of co-founder and Chief Executive Officer Adam Neumann, after the company was forced to abandon its IPO.

(Reporting by Uday Sampath in Bengaluru; Editing by Anil D’Silva)

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