Company sues ex-worker for providing info to Bloomberg reporter
WeWork Companies Inc. has filed a lawsuit against a former employee who gave company financial information to a Bloomberg News reporter.
Herbert Lash of Reuters writes, “In a complaint filed late on Friday with the New York Supreme Court for Manhattan, WeWork accused Joanna Strange, who was fired June 10, of unlawful access to its computers and of stealing confidential and proprietary information. The firm, which operates sites in 40 U.S. and foreign cities, also accused Strange of breaching her contractual and fiduciary duties.
“Bloomberg reported on Friday that in late April, WeWork in an internal review document slashed a 2016 profit forecast by 78 percent, cut its revenue estimate by 14 percent and disclosed a 63 percent surge in projected negative cash flow.
“Chief Executive Officer and co-founder Adam Neumann told employees in meetings on May 9 and May 23 that the company had to rein in costs and get its finances in order, according to Bloomberg. WeWork said on Thursday that it reported a case of corporate theft to the U.S. Attorney’s office and that the ‘stolen document was prepared months ago for scenario planning purposes and does not reflect our robust operating momentum.’
“Reuters was unable to contact a lawyer for Strange.
“WeWork said it required all employees to sign an agreement that precluded them from disclosing proprietary information without written approval. This restriction applied both during and after Strange’s employment, the court filing said.”
Read more here.