Disgraced #Uber CEO’s case going to arbitration

Hours after watching his replacement, incoming CEO Dara Khosrowshahi, address employees for the first time at an all-hands meeting, Travis Kalanick, who was pressured to resign from the company in June, was handed a win: A fraud lawsuit filed against him by Uber investor Benchmark was sent to arbitration.

“Mr. Kalanick is pleased that the court has ruled in his favor today and remains confident that he will prevail in the arbitration process,” a spokesman for Kalanick said in a statement. “Benchmark’s false allegations are wholly without merit and have unnecessarily harmed Uber and its shareholders.”

A Benchmark representative said the firm is looking forward to “presenting the facts” as the case proceeds. “This case is fundamentally a question of integrity and values, and the facts will fully support Benchmark’s position,” the representative said in a statement.

Benchmark, an early Uber investor and major shareholder that controls a board seat, filed the suit against Kalanick in mid-August alleging that the former CEO defrauded the firm into approving three additional board seats and giving Kalanick appointment powers.

The lawsuit sought to void three board seats created last year, one of which Kalanick currently occupies, which would in effect remove Kalanick as a company director.

The lawsuit alleges that Kalanick withheld information from Benchmark.

Source: Benchmark’s lawsuit against ousted Uber CEO Travis Kalanick will go to arbitration – LA Times


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