> that seems more like an exaggeration than a fraud if the product does work for the most part no?

If you bought it to go to the moon, it doesn’t work as promised. If the lie was wilful, that’s honest-services fraud.

Less facetious of an example: you sell a company that makes lots of money but has a material liability on its books. The liability can’t kill the company. But you intentionally hid it from a buyer. The company still generates all those dollars. But your hiding this material fact from the purchaser is fraudulent.

Disclaimer: I am not a lawyer. None of this is legal advice.

It's not about the Wework product "office space" being fraud, but about the product "wework shares" being sold as a good investment which is questionable

> about the product "wework shares" being sold as a good investment which is questionable

Investments can be shoddy without being fraudulent.

Securities offerings are never suggested that they’re a good investment; the same way that a software stack doesn’t suggest it’s the best thing for your use case.

It’s up to you to evaluate the investment in question and decide whether you wanna invest.

Nowhere do they say it is a good investment. You can’t do that in an S1. Investors decide.