WeWork paid off a female whistleblower with more that $2million in cash to stay quiet after she threatened to expose an alleged culture of drug-taking, sleeping with colleagues and discrimination at the company, and claimed that she was a victim of a sex assault.
The woman filed a 50-page document outlining a catalog of allegations in 2018, an investigation by Business Insider has revealed.
She said there was widespread use of MDMA or Molly, cocaine, and Xanax at company events by the real estate team and outlined problematic sexual relations in the department.
She worked under Mark Lapidus, the cousin of company founder and former CEO Adam Neumann’s wife.
Adam Neumann was CEO of WeWork when the female employee laid out a series of allegations, including that there was widespread use of MDMA or Molly, cocaine, and Xanax at company events
Mark Lapidus, who the woman worked under, had a reputation for partying, spending $36,000 for a table at Encore Beach Club in Las Vegas (pictured)
Lapidus was not named directly in the document but many of the allegations took place in the real estate department he ran.
The employee, who has not been named because she alleges an unverified claim of sexual assault, laid out a host of allegations, threatening to sue the company and an unnamed WeWork coworker, as well as file a charge of discrimination with the Equal Employment Opportunity Commission.
A senior manager admitted to the woman that he slept ‘with two direct female subordinates,’ the woman claimed.
She said that in 2016 she saw a male executive smoking marijuana at a company event and that he said ‘he wanted to have a go’ with a drunk female subordinate.
Lapidus, the cousin of Neumann’s wife Rebekah, was sacked around the same time the company settled with the woman.
The whistleblower was allegedly paid off around the time that Neumann was in fundraising talks with SoftBank – and negative press would have damaged the company’s reputation.
Lapidus was sacked from the company at around the same time it settled with the woman who made the allegations
New York-based WeWork, the brainchild of Neumann and Miguel McKelvey, offers office space in prime locations.
The company launched an investigation with an independent law firm, finding credible claims of bosses sleeping with subordinates and drug use.
Sources who worked at the company revealed to Business Insider that several other settlements were made by WeWork and they also highlighted issues within the real estate department.
Lapidus was said to be viewed as a favorite at WeWork and his real estate department avoided scrutiny. He reportedly enjoyed wild parties where he spent large amounts of cash.
In May 2017, he spent more than $5,000 for a team outing at London nightclub The Box, and another $36,000 for a table at Encore Beach Club in Las Vegas.
Sources told Business Insider that the company’s investigation found the real estate team was rife with problems. For instance, the probe discovered instances of managers sleeping with coworkers and subordinates, echoing an allegation from the document that a senior manager admitted to the woman that he slept ‘with two direct female subordinates.’
A spokesman for Neumann did not comment to Business Insider.
Sandeep Mathrani, who has just taken over as CEO of WeWork, said that he would adopt a zero-tolerance approach
Sandeep Mathrani, who has just taken over as CEO of WeWork, said that he would adopt a zero-tolerance approach.
‘At WeWork, new executive leadership has zero tolerance for such behavior or any violation of our company policies,’ he said.
‘It is our highest priority to ensure our employees feel safe and respected, and this starts at the top,” Mathrani said in the statement to Business Insider.
‘In this new chapter at WeWork we are fully invested in upholding a culture of integrity.’