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Uber investor sues ex-CEO over alleged fraud

12 August 2017

That board - and its support for former CEO Travis Kalanick [pictured above] - was the subject of a lawsuit filed Thursday in Delaware Chancery Court by Benchmark Capital Partners.

But it would seem being CEO is far different than maintaining control as a board member, for just as quickly, he appointed himself to one of three board seats, so that Uber's members of the board now number 11 instead of the previous eight. The petition also asks Benchmark to sell at least 75 percent of its stock so that the firm no longer has rights to appoint members to Uber's board of directors.

Kalanick resigned as CEO of Uber on June 20, and in the process, gave up his seat on the company's board because it was reserved for the CEO.

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We are also asking for a symbolic Board of Directors vote on this matter at today's Board meeting to show how the Board of Directors stands on this lawsuit brought against the company, its founder and the 15,000 employees of Uber who have all worked so hard in concert to create the fastest growing company in history. The lawsuit has been termed as completely force by Kalanick.

This is a new twist to the scandals that have hit the company of late, and it is expected to make the search for a new CEO even more hard.

Travis Kalanick may have stepped down as Uber's CEO, but he hasn't been sitting around idly since then, according to a new lawsuit.

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The suit, which calls on a DE court to bar Kalanick from tinkering with the Uber board in any way, argued that Kalanick saw his resignation as unavoidable and finagled to "pack the board with loyal allies in an attempt to insulate his prior conduct from scrutiny and clear the path for his eventual return as CEO". The lawsuit said Kalanick had known all these but failed to properly disclose them. The suit calls for an invalidation of Kalanick's position on the board. The two remaining seats are vacant.

Axios' Dan Primack was first to report the news on Thursday. To this end, at this point, in light of your suit against the Company, we believe it would be best, and hereby request, that Benchmark remove its representative from the Company's Board and move promptly to divest itself of enough shares in the Company so as to cease to have Board appointment rights.

As a company that has come to be loathed, following a stream of bad publicity following allegations of sexual harassment and discrimination, spying, false advertising and a high-profile lawsuit from Google's parent Alphabet, it was hoped that getting rid of Kalanick would help the company turn the corner. The investor indicated that some of the top CEOs are scared to take up the job.

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Uber investor sues ex-CEO over alleged fraud