Joel Schreiber
Schreiber illustrates how an early equity position can be converted into leverage and how the decline of a single asset can cascade across a network of personally guaranteed obligations, linking a WeWork shareholder to lenders and investors who also held roles in the WeWork financing structure.
Joel Schreiber is a New York real-estate investor identified in court records as the first outside investor in the company that became WeWork, the office-leasing venture later majority-owned by SoftBank 1. He used his WeWork holding as loan collateral, pledging his membership interest in We Member LLC, the vehicle holding his WeWork shares, to secure a $20 million revolving credit line from Goldman Sachs Bank USA dated September 3, 2019 2. After WeWork's September 2019 initial public offering was withdrawn, the collapse in share value triggered a margin provision, and Goldman Sachs obtained a preliminary injunction and a money judgment of $19.5 million in principal plus $2.6 million in interest 12.
Schreiber's exposure extends well beyond the WeWork loan 3. A Starwood Capital affiliate, Museum Building Holdings LLC, won a June 2023 summary judgment enforcing his personal guarantee of roughly $271 million on the Broadway Trade Center in downtown Los Angeles, a property securing debt that does not involve WeWork equity 3. New York courts entered two Starwood-related judgments in 2022 and 2023 totaling more than $88 million, with the lead deficiency judgment near $78.7 million 4. A federal investor suit captioned Kuriyan against Schreiber was filed in the Southern District of New York in March 2023 and is on appeal at the Second Circuit 5.
WeWork Stake and the Goldman Sachs Loan
Court records identify Joel Schreiber as the first outside investor in the company later known as WeWork, the venture co-founded by Adam Neumann and backed by the conglomerate SoftBank Group, also referred to as SoftBank 1. The litigation captioned Goldman Sachs Bank USA against Schreiber proceeded in the Supreme Court of the State of New York, New York County, under Index 656597/2021, before Justice Andrew Borrok 2. The court addressed a $20 million revolving line of credit dated September 3, 2019, for which Schreiber's collateral was his membership interest in We Member LLC, the entity holding his WeWork shares 2. The loan documents included a provision terminating the commitment if outstanding principal exceeded 25 percent of the pledged shares' value, giving the borrower three business days to pay down the balance 2.
WeWork's withdrawn September 2019 public offering reduced the share value and triggered that provision, and the court found that Schreiber transferred WeWork shares in violation of the pledge and security agreement 2. In its January 6, 2022 decision, reported as 2022 NY Slip Op 30291(U), the court enjoined further sale or transfer of We Member's assets, including the WeWork shares 2. Goldman Sachs later obtained a money judgment of $19.5 million in principal plus $2.6 million in interest 1. According to The Real Deal, Schreiber cashed out of WeWork for at least $40 million 2.
Collection Litigation
Beyond the Goldman Sachs matter, a WeWork investor counterparty also pursued Schreiber over an unrelated property 3. Museum Building Holdings LLC, an affiliate of Starwood Capital, holds two 2018 promissory notes from Broadbridge LA LLC on the Broadway Trade Center at 801 South Broadway in downtown Los Angeles, secured by the building and by Schreiber's personal guarantee 3. Broadbridge's August 9, 2022 Chapter 11 filing triggered Schreiber's personal liability of roughly $271 million, and the property sold at a December 6, 2022 foreclosure for $200 million, leaving a deficiency 3. On June 1, 2023, Justice Gerald Lebovits granted summary judgment in lieu of complaint under CPLR 3213, reported as 2023 NY Slip Op 50533(U), rejecting Schreiber's fair-market-value defense as foreclosed by the guarantee's own terms 3.
The collateral backing the Starwood debt is the Los Angeles building rather than WeWork equity 3. Two New York judgments in 2022 and 2023 totaled more than $88 million, with the lead deficiency judgment near $78.7 million, and a companion action proceeded in Kings County before Justice Aaron Maslow, who ordered $122,000 in attorney fees to Duane Morris LLP 3. Starwood moved in August 2024 to hold Schreiber in contempt and sought sanctions for non-compliance with subpoenas 4. Separately, the federal suit captioned Kuriyan against Schreiber was filed in the Southern District of New York under docket 1:23-cv-02381 on March 21, 2023, and was docketed at the Second Circuit under 24-2212 on August 22, 2024, where the appeal is pending 5.
All Findings
5 total
All Findings
5 totalfinancial (2)
Goldman Sachs won prelim injunction + judgment over Schreiber's pledged WeWork shares (We Member LLC)
Goldman Sachs Bank USA v. Joel Schreiber, We Member LLC, 2307 Holdings LLC, Jetson Member LLC, Retail Worx Member LLC, Index 656597/2021, Sup Ct NY County, J. Andrew Borrok, 2022 NY Slip Op 30291(U), decided Jan 6 2022 (preliminary injunction). $20,000,000 revolving line of credit dated Sept 3 2019; Schreiber's collateral was his membership interest in We Member LLC, which holds the WeWork (We Work Inc.) shares. Section 5.15: if outstanding-principal-to-WeWork-share-value ratio exceeded 25%, commitment terminated and borrower had 3 business days to pay down. WeWork's cancelled IPO dropped share value, triggered 5.15; Schreiber transferred (sold) WeWork shares in violation of the Pledge & Security Agreement and Amendment to We Member's Certificate of Formation. Court enjoined sale/transfer of We Member assets incl WeWork shares. Press (TheRealDeal/Bisnow): later money judgment of $19.5M principal + $2.6M interest (~$22.1M). Schreiber reportedly cashed out of WeWork for at least $40M.
Starwood (Museum Building Holdings LLC) won CPLR 3213 judgment on Schreiber's ~$271M personal guaranty; LA building, NOT WeWork, is collateral
Museum Building Holdings, LLC v. Joel Schreiber, Index 653485/2022, Sup Ct NY County, J. Gerald Lebovits, 2023 NY Slip Op 50533(U), decided June 1 2023 (CPLR 3213 summary judgment in lieu of complaint GRANTED). Museum Building Holdings (a Starwood affiliate; counsel Duane Morris LLP / David T. McTaggart) holds two 2018 promissory notes from non-party Broadbridge LA LLC on the Broadway Trade Center (801 S Broadway, downtown LA), secured by the building and Schreiber's personal guarantee. Broadbridge's Aug 9 2022 Chapter 11 filing triggered Schreiber's personal liability of ~$271M; property sold at foreclosure Dec 6 2022 for $200M, leaving deficiency. Schreiber's fair-market-value defense rejected as 'foreclosed by the terms of the guarantee itself' (guaranty Sec 6.20(b)(i)(B): debt reduced only by foreclosure sale price). COLLATERAL IS THE LA BUILDING, NOT WEWORK SHARES — WeWork equity does NOT back the Starwood debt. Companion Kings County action (Museum Building Holdings v Schreiber, Index 515041/2022, J. Aaron Maslow) also Active-Post Judgment. Press: two Starwood judgments (2022 + 2023) total >$88M (lead deficiency judgment ~$78.7M); Maslow ordered $122K attorney fees to Duane Morris (McTaggart, Chronis).
legal (3)
Goldman Sachs Bank USA v. Schreiber (NY Sup. Ct. NY County, 656597/2021): $19.5M judgment + $2.6M interest; WeWork-share collateral; Justice Borrok enjoined further sales
Goldman Sachs Bank USA v. Schreiber, Joel et al., Supreme Court of the State of New York, County of New York, Index No. 656597/2021. Schreiber (WeWork's first investor) pledged 1.56M WeWork shares (~$90M) as collateral for a $20M 2019 Goldman loan; Goldman alleges he sold 300,000 shares in breach and pledged worthless interests (Retail Worx). Justice Andrew Borrok awarded Goldman $19.5M + $2.6M interest and enjoined further sale of the WeWork stake. CROSS-NODE: WeWork-share collateral; Goldman is also a WeWork lender/forbearance party. 2022 NY Slip Op 30291(U). Retrieval: NYSCEF Index 656597/2021; Justia 2022-ny-slip-op-30291-u; Trellis case 36061.
Starwood v. Schreiber (NY, 2022+2023 judgments ~$88M; later $78.7M re Broadway Trade Center): contempt sought 2024; cross-node to Starwood (WeWork investor)
Starwood affiliate v. Joel Schreiber & Waterbridge Capital / Jack Jangana (Continental Equities), New York state court. Arose from a $213M (raised to $219M) Starwood loan on the Broadway Trade Center, downtown LA; personal guarantees by Schreiber+Jangana; 2020 default, foreclosure 2022-12. Two NY judgments 2022 + 2023 totaling >$88M (one tranche $78.7M). Starwood moved 2024-08 to hold Schreiber in contempt and sought sanctions incl. possible jail for non-compliance with subpoenas. CROSS-NODE: Starwood Capital (Barry Sternlicht) is also a WeWork investor. Broadway Trade Center owner filed Ch.11 2022-08. Retrieval: TheRealDeal/Bisnow coverage; NYSCEF index TBD (NY County); related Kings County fee order (J. Aaron Maslow).
Kuriyan v. Schreiber (S.D.N.Y. 1:23-cv-02381; 2d Cir. 24-2212): investor suit vs Schreiber; appeal pending
Kuriyan v. Schreiber, U.S. District Court, S.D.N.Y., No. 1:23-cv-02381, filed 2023-03-21 (CourtListener docket_id 67059734); appealed to U.S. Court of Appeals for the Second Circuit, No. 24-2212, docketed 2024-08-22 (docket_id 69363055). Plaintiff Kuriyan (separately litigates NM healthcare/Molina matters). Federal companion to the NY collection wars against Schreiber. Retrieval: CourtListener docket_ids 67059734 (SDNY) and 69363055 (2d Cir); RECAP filings available.