The day after Benchmark filed a fraud lawsuit against former Uber chief Travis Kalanick, a group of other shareholders in the $68 billion company are reportedly calling for the VC to give up its board seat and its right to appoint board members. Representatives from The Yucaipa Companies and Maverick Ventures signed the petition-style email, along with Shervin Pishevar (who’s the co-founder and managing partner of Sherpa Capital but signed as a personal investor). The email argues that Benchmark’s legal action will make it more difficult for the company to find a new CEO.
The request acknowledges that the board is aware of Uber's recent troubles but says "we are greatly concerned about the tactics employed by Benchmark to address them, which strike us as ethically dubious and, critically, value-destructive rather than value-enhancing," per a copy of the email obtained by Axios. Benchmark is suing Kalanick (Uber is also named in the case) for fraud, breach of fiduciary duty and breach of contract, alleging he conspired to gain control of Uber's board under false pretenses.
Here's a more detailed account of the lawsuit and its potential implications.
[Related: Uber Board Considers 3 Investment Offers to Buy Company’s Shares, The New York Times]
Article by PitchBook
