Published: Sun, August 13, 2017
Hi-Tech | By Grace Becker

Uber shareholders feud over investor's lawsuit

Uber shareholders feud over investor's lawsuit

The request was made in an email sent to the to other Uber investors and its board of directors that they were "were surprised and distressed to learn through the media of the lawsuit brought by your firm against the Company, and its founder and former Chief Executive Officer Travis Kalanick".

The lawsuit accuses Kalanick of "fraud, breaches of fiduciary duty, and breaches of contractual obligations".

As per the suit filed in Delaware Chancery Court, Kalanick stands accused of going against the terms of his retirement as CEO, besides using his clout to plot his return as the chief executive of the company.

Benchmark says Kalanick has acquired "a disproportionate level of influence over the board, ensuring that he would continue to have an outsized role in Uber's strategic direction even if forced to resign as CEO". According to ArsTechnica, the investors think, Benchmark's action "held the company hostage to public relations disaster".

A spokesperson for Kalanick said the lawsuit is "completely without merit and riddled with lies and false allegations" and is further evidence that Benchmark is acting "in its own best interests" contrary to those of the company.

According to a lawsuit filed by Benchmark Capital on Thursday against Kalanick, Uber's founder owns about 10% of the company's stock and about 35% of its Class B common shares.

Elon Musk Denies Giving Assistant 2-Week Test: 'Total Nonsense'
Tesla had over $3 billion in cash on hand at the end of the June quarter, compared with $4 billion on March 31. According to reports , the Autopilot HW 2.5 update quietly and slowly rolled out for Tesla Model 3 , S and X.

The lawsuit alleges that Kalanick understood that once the board became aware of these matters, they would likely force him to resign.

Senior vice president of global operations Ryan Graves was the subject of news as he revealed his intention to see himself out of his current position by September, ABC News reported.

Benchmark says Kalanick was aware of these issues in 2016 when the board chose to increase the number of voting directors from eight to 11.

The company's problems are not confined to its internal battles over bullying and sexual harassment claims - in early June 20 employees were fired following an investigation into 215 harassment complaints.

"In some ways my focus going forward will not actually change very much - it remains all about people, and it's clear to me the stability of our board of directors, the selection of our new CEO, and the empowerment of our management team is what is needed most", he said.

Like this: