Travis Kalanick is accused of not honouring the agreements he reached with other investors following his ouster from the post of the chief executive.
Uber co-founder and ousted CEO, Travis Kalanick now has more trouble on his platter following the recent filing of a lawsuit against him by one of the company’s biggest investor, Benchmark Capital.
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. Towards that, Kalanick is also accused of packing his own loyalists in the board just to ensure his accession to the hot seat has the least friction. Planting his own men in the board is also seen as an attempt to prevent his own wrongdoings from getting scrutinized.
Kalanick was forced to resign from the top post in June even though the company has since been functioning without a successor. While most of the board members had voted for Kalanick’s ouster, a broad consensus as to who should succeed continues to be elusive. Intense backstage drama as to who would head the $70 billion company continues unabated.
Kalanick meanwhile has vehemently denied the allegations, claiming it to be false and farther away from the truth. His spokesman released a statement that accused Benchmark of being the villain, acting against the interest of Uber or its employees and benefactors. Benchmark is also accused of being especially vengeful against Kalanick with the lawsuit seen as an attempt to prevent him from having a say in the daily operation of the company co-founded by him.
What seems to have triggered the latest round of spat is Kalanick’s refusal to let go of his privilege to appoint three board seats. The ousted CEO is believed to have agreed to this clause as part of the agreement he had had with other investors as terms of his resignation.
Kalanick is yet to respond to this allegation but the charges against him are many varied. Those range from another lawsuit filed again Uber by Waymo to the manner in which the medical records of the Indian rape victim got mishandled.
On the whole, Uber is in a mess and things seem to have just got dirtier all the more.