Uber investor files lawsuit to force former CEO Kalanick off board

Reuters SAN FRANCISCO (Reuters) — Venture capital firm Benchmark Capital is suing former Uber Chief Executive Officer Travis Kalanick to force him off the board of the ride-services company and rescind his ability to fill three board seats, according to the lawsuit.

The lawsuit filed Thursday accuses Kalanick of concealing a range of misdeeds from the board and scheming to retain power at the company even after he was forced to resign as chief executive of Uber Technologies Inc. in June following a series of scandals.

The company is currently seeking a new CEO, a search that has proved difficult.

Benchmark’s lawsuit marks a rare instance of a Silicon Valley investor suing the central figure at one of its own start-ups. The well-regarded venture firm was an early investor in Uber and said in the lawsuit that it owns 13 percent of Uber and controls 20 percent of the voting power.

Kalanick issued a statement calling the lawsuit “completely without merit and riddled with lies and false allegations.” The statement accused Benchmark of “acting in its own best interests contrary to the interests of Uber” and denounced the legal action as a “transparent attempt to deprive Travis Kalanick of his rights as a founder and shareholder.”

Uber and Benchmark Capital declined to comment.

Around Silicon Valley, the case surprised many technology investors, who deemed it “the nuclear option” for a venture firm. At the $68 billion valuation that Uber achieved last year, Benchmark’s stake would be worth almost $9 billion.

Bill Gurley, the venture capitalist who led Benchmark’s investment into Uber, was once a mentor to Kalanick and one of his closest confidants.

Gurley resigned from Uber’s board in June after he grew increasingly unhappy with Kalanick’s behavior, according to sources close to the situation.

The lawsuit filed Thursday in a Delaware court opens another chapter in a saga of woe at Uber that has cast doubt on the future of the world’s most highly valued start-up company.

Uber’s troubles include a trade-secret lawsuit by Alphabet Inc.’s Waymo unit that led to the departure of a star engineer and hobbled Uber’s self-driving car program and sexual harassment allegations that led to a major internal investigation and the dismissal of several top executives.Speech

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