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Investor Sues Uber’s Kalanick for Fraud
One of Uber Technology Inc.’s largest investors claims in a lawsuit that ousted CEO Travis Kalanick is trying to load the company’s board with allies to help him regain his job.
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One of Uber Technology Inc.’s largest investors claims in a lawsuit that ousted CEO Travis Kalanick is trying to load the company’s board with allies to help him regain his job.
California-based Benchmark Capital, which holds a 13% stake in the ride-hailing company, accuses Kalanick with committing fraud last summer when he gave himself the exclusive power to name three new board members. He awarded himself one of the seats this year after being pushed out in June.
Benchmark says it would not have agreed to the board expansion if it knew about the trouble brewing within the company due to Kalanick’s “gross mismanagement.” He was removed two months ago following a bevy of lawsuits and scandals, many sparked by his brash management style and “toxic” corporate culture.
Benchmark seeks to eliminate the three new board seats, two of which remain vacant. The move would remove Kalanick as a director.
Kalanick, dismissing Benchmark’s asserts as baseless, contends that the venture capital firm is acting in its own best interests rather than those of Uber.
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