Travis Kalanick is sued by one of Uber’s investors for treachery and fraudulence


Travis Kalanick was ousted as Chief Executive Officer in June. Now the problem has taken another turn. The biggest investor of Uber, Benchmark Capital has sued Travis censuring of “fraud, breach of contract, and breach of fiduciary duty.”

The complaint is filed in Delaware court, according to Axios.

Benchmark contains a seat on Uber’s board of directors. He claims that “Kalanick’s overarching objective is to pack Uber’s Board with loyal allies in an effort to insulate his prior conduct from scrutiny and clear the path for his eventual return as CEO—all to the detriment of Uber’s stockholders, employees, driver-partners, and customers.” as mentioned by Axios.

The lawsuit covers the June 2016 decision that increased the number of Uber’s board of voting directors from 8 to 11 and Kalanick has every right to designate those seats. As to which Benchmark argues that it would never have granted Kalanick those three extra seats had it known about his “gross mismanagement and other misconduct at Uber”  

Benchmark also argued upon “pervasive gender discrimination and sexual harassment,” and “allegedly harbored trade secrets stolen from a competitor.”

In response to all these allegations, Kalanick’s spokesperson said,  “The lawsuit is completely without merit and riddled with lies and false allegations. This is continued evidence of Benchmark acting in its own best interests contrary to the interests of Uber, its employees, and its other shareholders. Benchmark’s lawsuit is a transparent attempt to deprive Travis Kalanick of his rights as a founder and shareholder and to silence his voice regarding the management of the company he helped create. 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.”

Whereas, among of these disputes, the process of finding a new CEO for the company is being delayed.

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