Benchmark Capital, one of Uber's biggest investors, filed a fraud lawsuit against the car-hailing company's former CEO Travis Kalanick. According to Recode, the investor alleges that Kalanick manipulated the board so he could make a comeback and gain control of the board. Uber, on the other hand, expressed its disappointment in Benchmark, citing the possibility of an argument between its investors. In a statement released by Uber, part of it said: "The Board has urged both parties to resolve the matter cooperatively and quickly, and the Board is taking steps to facilitate that process."
Uber under its former CEO
In June 2017, Travis Kalanick was forced to resign as Uber's CEO due to investor pressure.
Under his supervision, anomalies were carefully noted, from doubtful business practices all the way to his management of the company. Despite his absence, sources say he remained eligible to vote as Uber's board of directors; a practice that alarmed Uber's biggest investors. Clearly, they think Kalanick is still powerful to use his influence to install more of his allies in the company; hoping to be able to regain his post for his interest.
Kalanick resigned stating that he loves Uber more than anything but if his resignation will bring back the glory days of the company, he said, he is willing to step down from his position. Meanwhile, other Uber investor did not appreciate Benchmark Capital's move to sue Travis.
According to ArsTechnica, the investors think, Benchmark's action "held the company hostage to public relations disaster." Apparently, they fear that if the case is not resolved soon, it will massively affect the fundraising of Uber.
Why Benchmark sued its former CEO
Included in Benchmark Capital's lawsuit is Kalanick's attempt to regain his position.
"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," the statement said.
Meanwhile, another company may just use Benchmark Capital's allegations to Travis Kalanick as a tool to strengthen their separate lawsuit against Uber.
Waymo, a car development company under Google's sister company Alphabet previously sued Uber for apparently acquiring documents with information about the company's self-driving cars from its former engineer Anthony Levandowski. After Levandowski left Waymo, he went on to build his own company named Otto, a similar business that deals with self-driving cars.
Now, Waymo is suing Uber stating that the car-hailing company knew that Levandowski had the copies of the documents before proposing to buy his company, Otto.
