NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against WeWork Inc. (“WeWork” or the “Company”) (NYSE: WE) on behalf of WeWork stockholders. Our investigation concerns whether WeWork has violated the federal securities laws and/or engaged in other unlawful business practices.
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On December 1, 2021, WeWork disclosed in a U.S. Securities and Exchange Commission filing that “[i]n connection with the preparation of the financial statements as of September 30, 2021, WeWork Inc. (the ‘Company') reevaluated its application of Accounting Standards Codification (‘ASC’) 480-10-S99, Distinguishing Liabilities from Equity, to its accounting classification of the Class A common stock subject to possible redemption (the ‘Public Shares’) issued as part of the units sold in the initial public offering by the Company's predecessor, BowX Acquisition Corp. (‘BowX’). The Company had previously classified a portion of the Public Shares in permanent equity. Upon further evaluation, the Company determined that the Public Shares include certain redemption features not solely within the Company's control that, under ASC 480-10-S99, require such shares to be classified as temporary equity in their entirety.” Accordingly, WeWork advised that certain of its previously issued financial statements should not be relied upon and would be restated. In addition, WeWork disclosed that its management has concluded that, in light of the classification error described above, there was a material weakness in internal control over financial reporting relating to the interpretation and accounting for certain complex features of the Public Shares.
The stock dropped more than 5% in extended trading after the disclosure.
If you purchased or otherwise acquired WeWork shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at email@example.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.