A venture capital firm is suing former Uber CEO Travis Kalanick for fraud and breach of contract, alleging that he tried to amass power on the company's board and hide from investors his "gross mismanagement and other misconduct". The complaint, which was filed in DE court, accuses Kalanick of "fraud, breach of contract and breach of fiduciary duty".
Effectively, according to the lawsuit, the new vote created a mechanism in which Kalanick would "continue to have an outsized role in Uber's strategic direction even if forced to resign as CEO".
Earlier this week another longtime Kalanick ally, co-founder Garrett Camp, sent a memo to employees saying that "Travis is not returning as CEO", according to a copy obtained by tech website Recode.
Kalanick, the former CEO of Uber, to entrench himself on Uber's Board of Directors and increase his power over Uber for his own selfish ends. The firm refers to both sexual harassment at Uber and the lawsuit Uber faces over stealing self-driving technology from Google.
But that brashness has also been blamed for a string of scandals this year, from the unearthing of a culture of sexism and bullying at Uber to a U.S. Department of Justice federal investigation and a high-stakes lawsuit filed by Alphabet Inc's GOOGL.O autonomous auto division, Waymo, that threatens Uber's self-driving vehicle ambitions. In addition, Benchmark alleges that Kalanick has refused to follow through on a previous agreement to make the two board seats open to approval by the entire board of directors.
Axios previously reported the suit.
The lawsuit demands that three extra board seats at Uber, added by Mr Kalanick in June past year, be removed.
Investor Benchmark Capital is chafing at the idea, however, and filed suit against its former colleague in DE on Thursday for fraud and breach of contract.
The suit centers around the creation of three additional board seats at Uber in June 2016.
An email to Kalanick was not immediately returned.
An Uber spokesman told the BBC it would not comment on the lawsuit. Here's a copy of the complaint.