Benchmark sues former Uber CEO Travis Kalanick

Benchmark, the Silicon Valley venture firm and early investor in Uber, has sued former CEO Travis Kalanick.

In a Delaware Chancery Court filing, originally identified by Axios’ Dan Primack, the suit alleges that Kalanick committed fraud, breach of contract and breach of fiduciary duty. Both Kalanick and Benchmark hold Uber board seats.

Accusing Kalanick of being “selfish” by packing Uber’s board with “loyal allies,” Benchmark alleges that the ousted CEO broke the law by trying to pave the way for his own return. Reports have suggested that Kalanick has been telling people that he’s “Steve Jobs-In it” and will be back at the helm.

If successful, the Benchmark lawsuit could kick Kalanick off the board of directors, making his return impossible.

Much of the complaint revolves around a June 2016 decision that expanded the size of Uber’s board from eight to eleven. Kalanick was given the right to choose those seats. Kalanick eventually gave one of those to himself when he lost his CEO seat. The other two are still unfilled.

Benchmark is claiming that it would never have given Kalanick the power to choose those seats if they had been aware of the gender discrimination and sexual harassment.

Uber has had a tumultuous 2017. After a former Uber employee wrote a story detailing sexual harassment and a company culture that discriminated against women, former U.S. Attorney General Eric Holder oversaw an investigation into the company’s culture. This ultimately led to a series of executive departures and Kalanick’s resignation.

They’ve also been dealing with a patent lawsuit with Waymo, the self-driving car division owned by the Google parent.

Breaking story…Check back for updates. 

Featured Image: REUTERS/Shu Zhang