WeWork paid a female whistleblower with more than $ 2 million in cash to remain silent after she threatened to expose an alleged culture of drug use, sleep with colleagues and discrimination in the company, claiming she was the victim of a sexual violence.
The woman submitted a 50-page document with a catalog of allegations in 2018, an investigation Business Insidehas revealed.
She said MDMA or Molly, cocaine and Xanax were widely used at corporate events by the real estate team and outlined problematic sexual relationships in the department.
She worked under Mark Lapidus, the cousin of the company’s founder and the wife of former CEO Adam Neumann.
Adam Neumann was CEO of WeWork when the female employee put forward a series of allegations, including the widespread use of MDMA or Molly, cocaine and Xanax
Mark Lapidus, among whom the woman worked, had a reputation for partying and spent $ 36,000 for a table at Encore Beach Club in Las Vegas (photo)
Lapidus was not mentioned directly in the document, but many of the allegations took place in the property department he ran.
The employee, who is not mentioned because she claims she was not verified for sexual abuse, made a large number of charges, threatened to prosecute the company and an unnamed WeWork employee, and filed a complaint of discrimination with the Equal Employment Opportunity Commission.
A senior manager admitted to the woman that he was sleeping “with two direct female subordinates,” the woman claimed.
She said she saw a male executive marijuana smoke in 2016 at a corporate event and he said “he wanted to make a try” with a drunken female subordinate.
Lapidus, the cousin of Neumann’s wife Rebekah, was fired around the same time the company settled with the wife.
The whistleblower would have paid off around the time Neumann was talking about fundraising with SoftBank – and negative press would have damaged the company’s reputation.
Lapidus was fired from the company around the same time and 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 started an investigation at an independent law firm and found credible claims from bosses who slept with subordinates and drug use.
Sources who worked at the company showed Business Insider that various other settlements were made by WeWork and they also pointed to problems within the real estate department.
Lapidus would be considered a favorite at WeWork and its real estate department avoided research. He reportedly enjoyed wild parties where he spent large amounts of money.
In May 2017, he spent more than $ 5,000 for a team outing at The Box nightclub in London and another $ 36,000 for a table at Encore Beach Club in Las Vegas.
Sources told Business Insider that the company’s investigation revealed that the real estate team was full of problems. For example, the probe discovered cases of managers who slept with colleagues and subordinates, following a statement in the document that a senior manager admitted to the woman that he slept “with two direct female subordinates.”
A Neumann spokesperson did not comment on Business Insider.
Sandeep Mathrani, who has just taken over the position of CEO of WeWork, said he would follow a zero-tolerance approach
Sandeep Mathrani, who has just taken over the position of CEO of WeWork, said he would use a zero-tolerance approach.
“At WeWork, new executive leadership means zero tolerance for such behavior or any violation of our corporate policies,” he said.
“Our highest priority is to ensure that 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 maintaining an integrity culture.”