Uber Investor Sues Travis Kalanick for Fraud

The fit shines a spotlight on governance issues during Silicon Valley start-ups. Most immature record companies are built atop a partnerships of entrepreneurs and a try capitalists who account them. In new years, start-up founders have gained some-more control over their companies as investors have concluded to give adult some-more of their government to get a square of a hottest firms. Mark Zuckerberg, a owner of Facebook, and Snap’s founders, Evan Spiegel and Bobby Murphy, all control voting rights during their companies, for example.


Benchmark’s fit shows that a change of energy is delicate. Investors will go to good lengths to undercut a association owner if they trust their investment is endangered.

“This is a energy onslaught over management,” Steven Hill, author of a book on Uber’s mercantile impact, pronounced of Benchmark’s lawsuit. “The house looked a other approach for years while Travis intent in all sorts of reprobate and even bootleg behavior. He is their monster.”

Benchmark declined to criticism offer on a suit, that was earlier reported by Axios. Uber also declined to comment.

A orator for Mr. Kalanick said, “The lawsuit is totally but consequence and riddled with lies and fake allegations.” The orator pronounced Benchmark was behaving in “its possess best interests” instead of those of Uber, and combined that Mr. Kalanick “is assured that these wholly groundless claims will be rejected.”

Mr. Kalanick is not meddlesome in returning to Uber as arch executive, according to a chairman endangered in a proceedings, who asked to sojourn unknown given he was not certified to speak publicly. Others have pronounced Mr. Kalanick wants to be a shade personality but indispensably carrying a arch executive title.

Benchmark invested in Uber 6 years ago, when a ride-hailing use was a minnow. Bill Gurley, a Benchmark partner, assimilated a company’s house during a time. Benchmark’s then-20 percent interest in Uber has now ballooned into one value of billions of dollars.

For years, a attribute between Mr. Kalanick and Mr. Gurley — and by prolongation Benchmark — was close. But that altered this year when Uber was plunged into a array of scandals. Among other things, a association faced claims that a workplace enclosed passionate harassment, and it was sued by Google’s sister company, Waymo, for stolen trade secrets over self-driving cars. Mr. Gurley distanced himself from Mr. Kalanick, and Benchmark eventually associated itself with other endangered Uber investors to pull Mr. Kalanick out.

Advertisement

Continue reading a categorical story

Benchmark now owns a 13 percent interest in Uber, and Mr. Kalanick has a 10 percent chunk, according to a suit. Even so, Mr. Kalanick has poignant poke over a company.

That’s partly given of a pierce he done in Jun 2016, that a fit hones in on. At a time, Mr. Kalanick got Benchmark to approve an amendment to a company’s licence that gave him a right to commission 3 new directors to supplement to Uber’s eight-member board. According to a suit, Benchmark would never have concluded to a pierce had it famous of Mr. Kalanick’s “gross mismanagement and other bungle during Uber.”

Yet Mr. Kalanick deliberately hid a problems during Uber, Benchmark claimed in a suit, and therefore he performed a rights over a 3 new house seats fraudulently.

After Mr. Kalanick stepped down in June, he also left a house chair that is designated for a arch executive, a fit said. Mr. Kalanick afterwards immediately reappointed himself to one of a 3 new house seats that he tranquil by a 2016 amendment. He has given refused to give adult control of a other dual house seats, according to a suit.

In public, a house pronounced there was a détente. “We demeanour brazen to stability to offer with him on a board,” pronounced a house about Mr. Kalanick in a matter during a time.

But his continued connection to Uber has taken a toll, a fit said. For weeks, Mr. Kalanick has secretly been waging a fight opposite those who pushed for his dismissal, according to stream and former Uber employees. And that has interfered with Uber’s arch executive hunt and other situations, including a possible investment from Japanese firm SoftBank.

Last month, many of Uber’s house members were vehement about one impending claimant for arch executive, Meg Whitman, who is a arch executive of Hewlett Packard Enterprise. But Mr. Kalanick was not partial of that organisation and had his possess elite candidates. Ms. Whitman eventually posted on Twitter that “Uber’s C.E.O. will not be Meg Whitman.”

Advertisement

Continue reading a categorical story

In a suit, Benchmark pronounced it was seeking a visualisation that a 2016 amendment to Uber’s corporate licence should be voided, and asked for an claim to stop Mr. Kalanick from participating in Uber house matters.

“Kalanick’s crude actions, if authorised to continue, would means lost mistreat to Uber by exposing it to reputational, regulatory and other risks,” Benchmark pronounced in a suit.

Mr. Kalanick, for his part, might have expected that this day would eventually come. In a YouTube video antiquated Jun 16, 2011, he spoke to a organisation of immature entrepreneurs about his knowledge assisting to emanate a start-up.

In bold, black lettering splayed opposite a PowerPoint slip behind Mr. Kalanick was a following phrase: “V.C.s tend to kill first C.E.O.s.”

“There are army all around we to take we out,” Mr. Kalanick pronounced in his presentation.


Continue reading a categorical story


Do you have an unusual story to tell? E-mail stories@tutuz.com