Uber investor escalates Kalanick clash
Venture-capital firm Benchmark asked a Delaware judge to temporarily block Uber Technologies co-founder Travis Kalanick from filling two vacant company board seats, claiming his interference hampers the search for his successor as chief executive officer.
Kalanick, who resigned as CEO in June but remains a board member, “continues to interfere with critical decisions at Uber,” including the executive search, Benchmark said Thursday in court papers filed in Delaware Chancery Court. Benchmark sued Kalanick this month, accusing him of duping the firm to gain access to three additional board seats.
In its filing, the firm asked the judge to bar Kalanick from filling the seats while the lawsuit is pending. Benchmark says the block is needed so that he doesn’t cast a decisive vote on any matter involving Uber’s board, including the CEO search.
“It has been widely reported that Mr. Kalanick’s behavior has caused potential CEO candidates to withdraw from consideration,” Benchmark said in the filing. “Mr. Kalanick’s actions are chilling the search process and threatening harm to Uber (and Benchmark’s investment) by keeping Uber a ‘leaderless, and therefore foundering, corporation.’ ”
The suit is the latest development in an escalating battle between Kalanick and Benchmark, one of Uber’s early investors which has a 13 percent stake. One of the firm’s partners, Bill Gurley, led the effort to oust Kalanick as CEO. Kalanick resigned after a series of controversies, including allegations of sexual harassment by his employees and the use of software designed to bypass regulators.
Kalanick has called the lawsuit a “fabrication” and accused the firm of using threats and intimidation to remove him from the company. He said Benchmark was aware of all the events on which its claims are based. The two parties are scheduled to appear in court Aug. 30.
“Benchmark’s suit relies on meritless personal attacks against Travis Kalanick that have no basis in law or fact,” Jimmy Asci, a spokesman for Kalanick, said in response to Thursday’s filings. “Benchmark’s shameful tactics and unfounded claims punish Uber, its employees and its investors at a critical time when the company most needs stability and leadership.”