Uber's ex-CEO and co-founder Travis Kalanick has had a very rough year so far and his troubles were compounded earlier this month when investor Benchmark filed a lawsuit seeking his ouster from the board. Kalanick accused Benchmark of fabrication and also went on to say that what the venture capital firm indulged in nothing but intimidation in order to drive him off the company's board.
Kalanick hits back
Benchmark, which is one of Uber's earliest backers and holds 13% in the company, had alleged in its lawsuit that Kalanick had conned the firm and appointed three allies to the board of the company.
However, Kalanick has hit back at Benchmark and according to documents made public by the Delaware Chancery Court, the former CEO of Uber has called the lawsuit nothing more than 'a fabrication'. In addition to that, he went onto accuse Benchmark of 'shameful' conduct for taking advantage of his fragile emotional state and launching the campaign for his ouster as Uber CEO right after his mother passed away in May this year.
Benchmark might have been one of the Uber's earliest backers but the firm had become increasingly towards Kalanick over the past few months in the wake of the range of scandals that dogged the company this year. In their lawsuit, Benchmark had even gone on to accuse Kalanick of 'gross mismanagement' and asked for his removal from the board.
Pressured to resign?
Kalanick's lawyers have claimed that due to his emotional state, he had no option but to relent and sign the resignation letter that was sent to him by the group (led by Benchmark) that wanted him gone. Benchmark wants a status quo order from the court so that Kalanick can no longer nominate people close to him to the Uber board.
His lawyers stated, “Benchmark is not seeking to preserve the status quo.To the contrary, Benchmark ignores the arbitration provision and seeks drastic relief that would silence and sideline Kalanick -- essentially the final relief it hopes to achieve.”
Kalanick's lawyers also outlined his prowess as a chief executive and stated that during his time at the helm, Uber's value increased manifold as it expanded at a breakneck pace.
They went on to stated that Benchmark's own investment of $12 million in Uber is now worth a staggering $7 billion. It remains to be seen how Benchmark's lawyers respond to these arguments from Kalanick's legal representatives when a court hearing takes place eventually. No date has been set yet for a hearing.
