VC Firm Benchmark Capital, An Early Investor In Uber, Sues Travis Kalanick For Fraud (axios.com)

Dan Primack, reporting for Axios: The battle between Benchmark Capital and Travis Kalanick just went nuclear, with the venture capital firm suing the former Uber CEO for fraud, breach of contract and breach of fiduciary duty. The complaint was filed earlier today in Delaware Chancery Court. Key graph, per the suit: "Kalanick, the former CEO of Uber, to entrench himself on Uber's Board of Directors and increase his power over Uber for his own selfish ends. 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." Why it matters: If Benchmark's suit is successful, Kalanick would be kicked off Uber's board of directors -- thus eliminating any faint hopes of him returning to the company in a substantial role.

Comments

Nice try, Benchmark.

[cunina]

There are few organizations on Earth I hate more than Uber (see Disney), but in this case, Kalanick is right. An investor isn't entitled to every piece of information one of its assets has, and even if it did, rolling back a shareholder vote is a way, way too extreme measure to deal with it.

Re:Nice try, Benchmark.

[Luthair]

There are issues with boards - something I hadn't realized prior to listening to Planet Money #594 new board members must be approved for voting by the existing board. So if you're in control of a board you can ensure perpetual control.

Uber can't become a non-evil company

[rsilvergun]

because their business model is predicated on shifting the cost of doing business onto their employees which is in turn made possible by those same employees economic desperation. They're inherently evil.