Key Uber Investor Sues Travis Kalanick To Get Him Off The Board

Key Uber Investor Sues Travis Kalanick To Get Him Off The Board

Benchmark says the firm wouldn't have voted for the expansion if it had known about Kalanick's "gross mismanagement and other misconduct at Uber" and that the former leader hasn't upheld his written pledge to keep those seats independent and subject to the entire board's approval.

Benchmark Capital, a venture capital firm that was an early investor in Uber and holds a seat on the board, has sued Travis Kalanick, Uber's founder and recently-ousted CEO.

In its lawsuit, Benchmark argued that Kalanick was aware of these problems when Uber's board in 2016 agreed to expand the number of voting directors from eight to 11, with Kalanick having the sole right to designate those seats. Neither Benchmark nor Kalanick could be reached for comment.

Instead, Kalanick moved to take one of the board seats upon his resignation earlier this year.

Investor Benchmark Capital is chafing at the idea, however, and filed suit against its former colleague in DE on Thursday for fraud and breach of contract.

That would kill Kalanick's seat on the board and most of his remaining influence. It also seeks an injunction preventing Kalanick from participating in board business, including the naming of a new CEO.

Kalanick resigned in June, yielding to pressure from investors seeking to clean up a toxic corporate culture at Uber.

Uber wrote in a statement that the lawsuit is "without merit and riddled with lies".

Kalanick stepped down as Uber's CEO in June after a series of controversies, including a lawsuit by Google's self-driving-car subsidiary, Waymo, alleging theft of trade secrets; another lawsuit by a woman in India who alleged Uber obtained her medical records after she was raped by one of the company's drivers; and widespread allegations of sexual harassment at the firm. Travis will continue to act in the interests of Uber and all of its stakeholders and is confident that these entirely baseless claims will be rejected.

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