Benchmark Sues Travis Kalanick for Fraud

Those who follow the tech world might remember that back in June, Travis Kalanick was fired from his post as Uber’s CEO. The main reason for his ousting were the not-very-happy investors who complained about his way of handling the business. So, after taking the ride hailing company from the very beginning and transforming it into the biggest player in this business, Kalanick was out for good. Now, it seems like the trouble isn’t over. An investor called Benchmark has decided to take a step further and sue the former Uber CEO. The venture capital firm is reportedly accusing him of fraud and other wrongdoings, in an effort to also kick him out of the company’s board of directors.

Travis Kalanick sued for fraud

Benchmark reportedly filed the lawsuit which targets Kalanick on Thursday. At its center is the former CEO’s successful attempt to have more power in Uber’s board, which happened last year. According to the investor, his original plan was to get more friends and allies to be part of Uber’s board. All of this is supposedly an attempt to prepare the path for his to come back as CEO. The investors who kicked him out obviously don’t want this to happen. This is why one of them decided to act.

Benchmark’s suit suggests that Kalanick should no longer have a chain in the director’s board at the ride hailing company because of his schemes. The price of the company is of about $70 million. This latest action is a clear example of how much debate hovers over who should have the biggest power in this company. After eight years of being the executive chief of Uber, Kalanick stepped down from his position after serious pressure from investors to do so. However, he is still a member of the board. Since June, the remaining directors have struggled to make decisions and search for candidates for the post of CEO.

An internal battle

This recent suit only displays the fragile power balance that exists inside some of those big companies. A palpable proof that some investors would do anything in their power to make sure that their investments are safe. Both Uber and Benchmark chose to not make comments on the situation.

Image source: flickr

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