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April 7, 2020, 8:37 a.m. EDT

WeWork sues Softbank alleging canceling of $3 billion stock tender offer was 'wrongful'

WeWork parent The We Co. said Tuesday it has filed a lawsuit against SoftBank Group Corp. (TKS:JP:9984) (OTC:SFTBY) , alleging SoftBank breached obligations when it failed to complete the tender offer for $3 billion worth of WeWork shares. "SoftBank's failure to consummate the tender offer is a clear breach of its contractual obligations under the [Master Transaction Agreement] as well as a breach of SoftBank's fiduciary obligations to WeWork's minority stockholders, including hundreds of current and former employees," a special committee of We Co.'s board of directors said in a statement. On April 2, Softbank said it "ended" its $3 billion tender offer " because certain conditions to the tender offer were not satisfied ." Softbank said at that time that it would continue to help bail out the office-space rental company. WeWork said it's looking for Softbank to either complete the tender or pay "compensatory damages" for breach of contract and fiduciary duty. Softbank's U.S.-listed shares have lost 13.7% year to date, while the S&P 500 (S&P:SPX) has declined 17.6%.

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