Former Uber CEO Sued By Benchmark, Makes Comeback Less Likely

Travis Kalanick, the ex-boss at Uber has been talking up his return to the company for months, comparing himself to Steve Jobs when the Apple founder was ousted from his own firm. Unfortunately for Kalanick, his troubles are only piling up as he now has to contend with a lawsuit filed by the biggest shareholder of the ride-hailing firm, Benchmark.

Benchmark was one of the earliest investors in Uber, which makes sense since it is a venture firm based in Silicon Valley. Now, that same company is slapping Kalanick with allegations of fraud and breach of contract, as well as breach of fiduciary duty, TechCrunch reports.

For some context, Kalanick and Benchmark hold positions on Uber’s board of members. In the lawsuit, the venture firm is accusing the former CEO of setting up his return by packing the committee with supposedly “loyal allies”. If so, this explains Kalanick’s boundless confidence that he is going to return to Uber despite getting kicked out.

Benchmark is apparently having none of this and is pushing for the lawsuit in order to prevent Kalanick’s return. If the investor firm gets its way, the former ride-hailing boss will also be booted from the board of directors, thus removing much of the power and influence that he had.

Aside from specifically targeting Kalanick, Benchmark’s lawsuit is also aiming to reduce the number of board members from 11 to 8, CNBC reports. This is because the recent three additions are suspected of being the allies of the disgraced executive, which would make any decision made by the top dogs questionable.

Right now, Benchmark still holds a significant position in Uber, with over 20 percent of the voting rights. Kalanick falls only a little bit behind with 16 percent, but his allies can quickly bolster that if they do decide to reinstate him.