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Uber investor gave Travis Kalanick a month to quit before suing to oust him

Early investors in Uber say the controversial boss is attempting to deter candidates away from replacing him 

Laharee Chatterjee
Tuesday 15 August 2017 04:03 EDT
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Benchmark Capital say Travis Kalanick has undermined the process of searching for his successor
Benchmark Capital say Travis Kalanick has undermined the process of searching for his successor (Reuters)

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Venture capital firm Benchmark Capital said on Monday it gave Uber and its ousted chief executive, Travis Kalanick, a month to review its recommendations before filing a lawsuit last week to force Mr Kalanick off the board and rescind his ability to fill three board seats.

The lawsuit, filed on Thursday, also accused Mr Kalanick of concealing a range of misdeeds from the board and scheming to retain power at Uber even after he was forced to resign as chief executive.

"We know that many of you are asking why Benchmark filed a lawsuit against Travis last week. Perhaps the better question is why we didn't act sooner," Benchmark said in a letter to Uber employees on Monday.

Mr Kalanick criticised Benchmark's action and said he was working with the board to identify a new chief executive.

"I am disappointed and baffled by Benchmark's hostile actions, which clearly are not in the best interests of Uber and its employees on whose behalf they claim to be acting," Mr Kalanick said in a statement.

Benchmark Capital said Travis Kalanick was still involved in the day-to-day operations at Uber, which has created a sense of uncertainty and undermined the search for his replacement.

"Indeed, it has appeared at times as if the search was being manipulated to deter candidates and create a power vacuum in which Travis could return," Benchmark said in the letter.

The well-regarded venture firm was an early investor in Uber and said in the lawsuit that it owns 13 per cent of Uber and controls 20 per cent of the voting power.

Benchmark has explicitly said it would block any potential investment deal in Uber unless the three board seats added last year are eliminated, CNBC reported.

Uber and Benchmark were not immediately available for comment on the CNBC report outside regular business hours.

Reuters

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