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Uber investor accuses Kalanick of fraud, slaps lawsuit

Massachusetts State News.Net - Saturday 12th August, 2017

CALIFORNIA, U.S. - One of Uber’s largest investors, Benchmark Capital has accused the company’s ousted former CEO, Travis Kalanick of scheming to regain power by trying to pack the board.

Kalanick, who was ousted following a revolt by major shareholders in mid-June, has denied the allegations.

He was forced to quit after receiving a letter demanding his resignation from some of its top investors.

Benchmark Capital owns 13 percent of the ride-hailing company and has accused Kalanick of fraudulently trying to pack Uber's board with his allies so he can return to his old job.

Benchmark further said that that would harm Uber's shareholders, employees, drivers and customers.

A week after Kalanick announced he was taking time out to battle personal problems, the shareholders joined forces.

Kalanick, who is no longer chief executive, remains on Uber's board and has the power to appoint three members.

Commenting on the lawsuit, a spokesperson for Kalanick said the legal action is "completely without merit and riddled with lies and false allegations.”

The statement added, "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.”

In its lawsuit, detailing the allegations, Benchmark claims Kalanick knew Uber might be accused of stealing trade secrets from Waymo and has interfered in the board's attempts to hire a new CEO.

Benchmark wants to remove him from board - and get rid of the three extra seats added by Kalanick.

Uber is still seeking a new CEO, on Thursday its global operations chief revealed to staff in an email that he would be standing down from the role in mid-September. 

He will however, still remain on the board.

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