As per the suit filed in Delaware Chancery Court, Kalanick stands accused of going against the terms of his retirement as CEO, besides using his clout to plot his return as the chief executive of the company.
The dissenting shareholder group - headed by Los Angeles billionaire Ron Burkle, Hyperloop One backer Shervin Pishevar, and music mogul Adam Leber - blasted the legal salvo from Benchmark's Bill Gurley as a "fratricidal" move against Kalanick that could jeopardize Uber's ability to raise funds and find a new CEO.
Also on Friday, members of the board of directors sent an email to Uber staff expressing dismay over the Benchmark lawsuit, according to a copy of the note obtained by Reuters.
Kalanick meanwhile has vehemently denied the allegations, claiming it to be false and farther away from the truth. He also agreed to relinquish control of the other two new seats, but Benchmark alleges that he's not yet signed the document that would make that official.
It wants to remove him from board - and get rid of the three extra seats added by Mr Kalanick.
According to Pishevar, Benchmark's lawsuit has "held the company hostage to a public relations disaster". "Benchmark's lawsuit is a transparent attempt to deprive Travis Kalanick of his rights as a founder and shareholder and to silence his voice regarding the management of the company he helped create".
Benchmark, in its lawsuit filed on Thursday, is seeking to force Kalanick off the board, and accuses him of concealing a range of misdeeds and scheming to retain power at the company even after he was forced to resign as chief executive in June. "Travis will continue to act in the interests of Uber and all of its stakehodlers and is confident that these entirely baseless claims will be rejected".
"It has been publicly reported that Kalanick's behavior has already interfered with Uber's CEO search: various potential candidates have withdrawn from consideration because of Kalanick's continued participation in the search and his efforts to re-assert influence over the company", Benchmark said in its complaint. Eight days later, under pressure from the board, he resigned.
Kalanick is yet to respond to this allegation but the charges against him are many varied.
While he may be out as CEO, reports have been swirling that Kalanick may have been plotting a return to his old position.
The board had a meeting scheduled for Friday, Axios said.
"It's time for a new chapter, and the right leader for our next phase of growth", he told employees. "We are committed to hiring a new world-class CEO to lead Uber". Graves will remain on Uber's board.