Uber, beset by scandal, faces battle over 'destructive' lawsuit

Uber, beset by scandal, faces battle over 'destructive' lawsuit

Uber, beset by scandal, faces battle over 'destructive' lawsuit

Benchmark Capital, which owns 13% of the ride-hailing company, has accused Travis Kalanick of fraudulently trying to pack Uber's board with his allies so he can return to his old job as CEO. The lawsuit was filed in an effort to kick Kalanick off the board and get rid of a few empty board seats that were added previous year, with Benchmark arguing that it never would have approved the addition of those seats had they been aware of Kalanick's "gross mismanagement" of the company.

Uber's board members are presently searching for a new CEO after Kalanick's departure.

The investors' email, which was obtained by Axios, requests Benchmark remove itself from the board in order to allow Uber to "realize its full potential by allowing the necessary work to be done in the Board Room rather than Courtroom".

Kalanick issued a statement calling the lawsuit "completely without merit and riddled with lies and false allegations".

The venture capital firm filed the lawsuit in Delaware Thursday, Aug. 10, accusing Kalanick of pulling strings to eventually return as the company's CEO.

Ryan Graves told Uber staff in an email Thursday that he will transition out of his role as senior vice president of global operations in mid-September. He will still remain on the board.

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If he wants us to play together we can, as we have already shown. "The club was clever like that because we anticipated what we needed".

Kalanick resigned under pressure in June after a monthslong investigation into harassment and other behavior problems at the San Francisco-based company. The board convened Friday to discuss the lawsuit, said people familiar with the matter, who asked not to be identified because the meeting is private. Uber Technologies is valued at $68 billion with Benchmark Capital share totaling $9 billion. The firm says Kalanick has already interfered in the board's attempts to hire a new CEO.

"Stockholders were not provided with all material information relevant to the decision to consent to the three additional board seats", the complaint reads. In doing this, Benchmark says Kalanick will bypass scrutiny for past actions and help "clear the path" to becoming once again Uber's leader.

"The combination of this lawsuit and his cofounder's statement that he's not coming back are pretty strong statements", said Ben Narasin, a Silicon Valley venture capitalist.

© 2017 Associated Press under contract with NewsEdge/Acquire Media. At a time when thousands of employees around the world are working hard to serve our drivers and riders and continue to innovate, our priority remains to select Uber's new CEO as quickly as possible.

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