New York State Attorney General Investigating WeWork

Re:New York State Attorney General Investigating WeWork by anonu on Wednesday November 20, 2019 @04:22AM (#21582358)

Since he had outside investors, he was a fiduciary and had obligations under many US security laws to meet certain duties.

https://en.m.wikipedia.org/wiki/Fiduciary

  A fiduciary is a person who holds a legal or
  ethical relationship of trust with one or more
  other parties (person or group of persons).
  Typically, a fiduciary prudently takes care of
  money or other assets for another person.

And I would argue that it doesn't matter if SoftBank was the only investor and/or they weren't "harmed" in the situation.

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Re:New York State Attorney General Investigating WeWork by crazygringo on Wednesday November 20, 2019 @09:39AM (#21584253)

You are correct about fiduciary duty, even in private companies.

Cases I'm aware of violating fiduciary duty, however, have all involved actions the board wasn't aware of.

WeWork seems fairly unique in that Adam Neumann's actions all seem to have been highly transparent.

I'm certainly not a lawyer, so I'm actually quite curious about the ramifications of fiduciary responsibility here. That responsibility is to the other investors... but if they are equally assenting, then I don't see how there's a crime here. On the other hand, if this is, say, Adam Neumann with SoftBank harming other dissenting investors who have small minority stakes, then there's quite possibly a case here -- that might include SoftBank as well for some kind of negligence, no?

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Re:New York State Attorney General Investigating WeWork by rtkwe on Friday November 22, 2019 @10:49AM (#21606625)

I could easily see them finding that the board was mislead about the process involved in selecting himself as the best option to lease building from which would remove the 'but the board knew about it' wrinkle.

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