Early Uber Investor Sues Ex-CEO Travis Kalanick for Alleged Fraud

12 August, 2017, 15:03 | Author: Terri Saunders
  • A prime example of

Nevertheless, it is Gurley's resignation from the board that the trio of dissenting shareholders demanded Friday, likewise asking that Benchmark sell off at least three-quarters of its 13 percent stake in the company, estimated to be worth more than $8 billion. But in a statement, Kalanick's spokesperson said the lawsuit is an attempt to deprive Kalanick of his rights as an Uber founder and shareholder. They are Kalanick's support for a harassing and abusive management style, the theft of trade secrets by a founder of Otto, an autonomous truck technology company that was acquired by Uber, the existence of the Grayball software to shut regulators out of the ride-sharing service, and the charge that Kalanick had received and read the medical records of a woman in India that complained of being raped by an Uber driver. This is expected to change the way investors deal with start-up founders in the future. Gurley resigned from Uber's board in June after he grew increasingly unhappy with Kalanick's behaviour, according to sources close to the situation. If Benchmark gets its way that board vote would be invalidated and Kalanick would be forced off the Uber board. These scandals have led to halting of the Uber's self-driving auto after the engineer at the center of its development left the company.

Benchmark's suit, filed in Delaware Chancery Court, seeks to have Kalanick removed as a director by reversing the board-expansion decision. The lawsuit accuses Kalanick of knowingly misleading the board to agreeing to increase the board members to 11 from eight, with Kalanick exclusively involved in filling the extra seats. Notably, Kalanick is one of the board members on the search committee for a new CEO, which may be one of the reasons nobody has stepped up to take the job. The other two remain vacant. With this statement and now the lawsuit, Ben Narasin a venture capitalist in the Silicon Valley is convinced that Kalanick "is done".

In the latest development, Sherpa Capital's Shervin Pishevar, Yucaipa Companies' Ron Burkle and Maverick's Adam Leber have started a revolt against Benchmark.

Phoenix Suns reveal new Nike uniforms
Once again, Bam Adebayo was wearing a new Heat jersey and it looked just like the one that appeared in the " NBA 2K18" screenshot. For the 2017-18 season, home teams will choose which uniform they want to wear for each particular game on their schedule.


The lawsuit, which was first reported by Axios news website, alleges that Kalanick is scheming to regain power at Uber by "packing the board" with his own confidants.

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".

Recommended:



Popular

U.S. stocks fall on North Korea worries
On Tuesday, August 8, despite that new record high, the market pulled back and closed lower due to decreased risk appetite. ENERGY: Benchmark U.S. crude gained 39 cents to $49.95 a barrel in electronic trading on the New York Mercantile Exchange.

Muslim woman wins $85000 lawsuit after police remove her hijab
Powell filed the lawsuit in April 2016, alleging the police department had violated her First Amendment rights. Powell was arrested after police found a warrant under her name for a shoplifting incident, the CNN reported.

Liberty Interactive Corporation (QVCB) Earns Daily Media Impact Rating of 0.18
Shares last traded at $33.19 a tad under $33.58, the 50 day moving average and a tad above the 200 day moving average of $32.54. Meeder Asset Management Inc. raised its position in shares of Liberty Interactive Corporation by 115.9% in the second quarter.

SC: PUC must for renewal of vehicle insurance
Noting these abnormalities, the EPCA conducted a detailed study on the way forward and proposed a road map to the court. However, he added that the current regime only provides for a fine of Rs 1,000 for driving without a PUC certificate.

Prudential Financial, Inc. (NYSE:PRU) Stake Decreased by Clearbridge Investments LLC
Clearbridge Investments LLC's holdings in Prudential Financial were worth $878,000 as of its most recent filing with the SEC. BidaskClub raised shares of Prudential Financial from a "hold" rating to a "buy" rating in a report on Wednesday, July 12th.

Skoda Octavia vRS Specs and Features have Announced
The front fascia of the new Octavia RS gets new headlamps and adaptive front lighting along with a sporty bumper and mesh grille. Skoda has started accepting pre-booking for its upcoming models, the Rapid Monte Carlo and the Octavia RS, in the country.

Dig Safely New York to celebrate safety, education, community today
The affected utility companies will be notified of the intent to dig. 811 can be called from anywhere in the country. When you dig, you run the risk of hitting an underground utility, even if you are only digging a few inches.

Japan deploys missile defence over N Korea threat to Guam
A THAAD battery includes a truck-mounted launcher, tracking radar, interceptor missiles and an integrated fire control system. According to the recent press report , which remains unverified by NPR, North Korea could have up to 60 nuclear weapons.

Swansea's Paul Clement calls for Gylfi Sigurdsson transfer compromise
Sigurdsson has not played for Swansea since their first pre-season friendly at Barnet on July 12. We do not have another possibility to win our first game - this is the only one.

Stocks plunge amid growing North Korean-US tensions, gold continues rise
ENERGY: Benchmark U.S. crude gained 39 cents to $49.95 a barrel in electronic trading on the New York Mercantile Exchange. Pyongyang said it was examining plans for attacking Guam, a USA territory in the Pacific with a military base.