Benchmark tells Uber employees: This is why we're suing Travis Kalanick

Travis Kalanick

Today, Benchmark sent a letter to Uber employees that explained, "We know that many of you are asking why Benchmark filed a lawsuit against Travis last week".

However, Kalanick was forced to step down as CEO in June due to bad press and shareholder pressure.

Benchmark Capital, one of Uber's most prominent investors, last week sued Kalanick for fraud, asking a judge in DE to kick him off the board and block him from appointing his allies as directors. The group, which includes a founder of Sherpa Capital, Rob Burkle and a partner at Maverick, say they have investors ready to acquire the shares. It is still considering an offer from a consortium led by Shervin Pishevar, an early investor in the company, to buy Uber shares from an existing investor.

The group of shareholders noted the lawsuit would only hinder the process of raising funds and searching for Uber's new CEO.

"While most of you have not had the opportunity to read the full "Holder Report" written by Tammy Albarrán and Eric Holder at Covington, Benchmark's representatives on Uber's board have", the letter said.

In the lawsuit, Benchmark claims Kalanick concealed material information from investors when he created three new board seats in 2016 and gave himself the right to appoint people to those seats.

As for Kalanick, he recently released a statement, expressing confusion regarding the lawsuit by Benchmark.

Uber's board has voted to move forward on proposals by two investment groups to buy shares in the ride-hailing service and is considering a third offer, with any final decision set to affect who gains the upper hand at the company.

Benchmark did not immediately respond to a request for comment.

It has also come to our attention that Benchmark has been conferring with Lowercase Capital in their efforts that are adverse to Uber.

Benchmark has turned their $27M investment into a $8.4B position in the company.

Trouble is, Mr. Kalanick is still on the board, can stack it in his favor thanks to his supervoting stock and company bylaws, and is on the committee trying to find a new leader. In an effort to clear up a few misunderstandings, the venture capital firm sent a letter to employees explaining why it chose to do this. Your actions are culpably wrong-headed and can only be corrected by ceasing and desisting from any further interference with employees and the business of the company.

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