Here's how much Uber stock ousted CEO Travis Kalanick actually controls

Things could go from bad to worse for Travis Kalanick

Things could go from bad to worse for Travis Kalanick

Investors Shervin Pishevar of Sherpa Capital, Ron Burkle of Yucaipa Companies and Adam Leber, an angel investor who works for music company Maverick, signed the email and said Benchmark's lawsuit harms Uber Technologies Inc's [UBER.UL] valuation, interferes with fundraising efforts and impedes the company's search for a new CEO to replace Kalanick, according to the email sent to shareholders and board members.

Benchmark, one of Silicon Valley's top venture-capital firms, insists in its suit that Kalanick's reported transgressions weren't evident when Uber's board voted a year ago to increase its membership from eight to 11 and to give Kalanick sole appointment rights.

Benchmark is suing Kalanick over allegations of "fraud, breaches of fiduciary duty, and breaches of contractual obligation", according to a complaint filed in Delaware Chancery Court.

The lawsuit says Kalanick stacked the board to pave a "clear the path for his eventual return as CEO - all to the detriment of Uber's stockholders, employees, driver-partners, and customers".

Benchmark said it never would have granted Kalanick control over the additional seats had it been aware of the "gross mismanagement of Uber and several other significant matters". Towards that, Kalanick is also accused of packing his own loyalists in the board just to ensure his accession to the hot seat has the least friction. After Kalanick resigned in June, he appointed himself to one of those seats.

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The outcome of an emergency board meeting on Friday to address Uber's warring factions could not be determined at press time.

According to Pishevar, Benchmark's lawsuit has "held the company hostage to a public relations disaster". Clearly, they think Kalanick is still powerful to use his influence to install more of his allies in the company; hoping to be able to regain his post for his interest.

A representative for Kalanick said the lawsuit is "completely without merit and riddled with lies and false allegations".

Uber's former boss, Travis Kalanick, who was ousted following a revolt by major shareholders is being sued by one of its largest investors.

Benchmark's suit comes on the heels of another lawsuit from Waymo, Google's self-driving auto unit, which had also sued Uber.

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