WeWork Said to Face SEC Probe Into Possible Rule Violations

The transcript discusses the SEC's preliminary inquiry into WeWork, highlighting the involvement of Andrew Ceresney, a former head of the SEC's enforcement division. It explores WeWork's history of lawsuits, including discrimination claims against Adam Neumann. The discussion emphasizes that private companies, like Theranos, can still face SEC penalties. The transcript also analyzes WeWork's financial disclosures, particularly the controversial 'community adjusted EBITDA' metric, which drew SEC attention.

Who has WeWork hired in response to the SEC's preliminary inquiry?

• A public relations expert

• A former head of the SEC's enforcement division

• A financial analyst from Wall Street

• A former CEO of a tech company

What is a common misconception about private companies and SEC regulations?

• Private companies must disclose all financial information

• Private companies are exempt from SEC penalties

• Private companies are more regulated than public ones

• Private companies cannot raise funds publicly

Which private company faced SEC penalties for misleading investors?

• Theranos

• WeWork

• Uber

• Airbnb

What controversial financial metric did WeWork use in its early financial documents?

• Community adjusted EBITDA

• Net profit margin

• Gross domestic product

• Return on investment

What was a significant issue with WeWork's prospectus?

• It included unknown accounting metrics

• It was not filed on time

• It was written in a foreign language

• It was too short