3 Uber investors ask Benchmark to forfeit board seat

Three Uber investors said a lawsuit against co-founder Travis Kalanick was designed to “hold the company hostage” and asked Benchmark, the venture capital firm that brought the suit, to step down from the board.

The investors sent a letter Friday addressed to Benchmark, saying they opposed the suit, according to a copy reviewed by Bloomberg. The investors are Sherpa Capital’s Shervin Pishevar, Yucaipa Companies’ Ron Burkle and Maverick’s Adam Leber. They don’t hold seats on the board or a majority of the company’s stock, but the letter said they’re seeking other shareholders to add their signatures.

Battles among Uber stakeholders have spilled into public view, and the conflicts risk paralyzing the San Francisco ride-hailing company at a crucial time. Uber is looking to quickly fill its vacant CEO position, while trying to boost morale, battle a trade secrets lawsuit from Alphabet and defend against well-funded rivals.

At least two people in consideration for the CEO job, including General Electric Chairman Jeffrey Immelt, called Uber directors, expressing dismay after this week’s suit, people familiar with the discussions said.

On Thursday, Benchmark sued Kalanick in Delaware Chancery Court, alleging that he withheld material information before asking the board to vote on adding three additional board seats last year. Kalanick now occupies one of those seats, but Benchmark is seeking to eliminate all three, according to the complaint. A spokesman for Kalanick has said the suit is “completely without merit and riddled with lies and false allegations.”

The firms didn’t immediately respond to requests for comment. The board was