Affected by Scandal – Uber Faces Clash due to ‘Devastating’ Litigation

Uber Faces Clash due to ‘Devastating’ Litigation

Uber, a popular ride service company is facing clashes with a divided board of directors as well as furious shareholders after a lawsuit was filed against Travis Kalanick- the expelled chief executive of the company. The litigation was filed by Benchmark Capital, an investor in Uber, causing yet another blow to the company as it is already struggling to recover from a chain of scandals and get a new leader on board.

On August 11, 2017, three investors who invested in Uber asked Benchmark to withdraw from Uber Technologies Inc’s board and divest its shares, as per the email disclosed by Axios—a news website. In addition, on the same day, board of directors and its members sent an email to the staff of Uber expressing disappointment over the lawsuit by Benchmark. The directors mentioned in their email that, “The Board of Directors in extremely dismayed that a disagreement between some shareholders has resulted in the lawsuit being filed. The board of directors have advised both sides to resolve the issue quickly and cooperatively. The board is taking all necessary steps to facilitate the process of resolving the matter.”

Benchmark filed its litigation on Thursday, August 10, 2017, and is looking to eliminate Kalanick off the board. It has accused him for concealing and hiding several misdeeds and conspiring to retain his power over the firm even after he was pushed to resign and quit the position as a chief executive in June. Benchmark was one amongst the many Uber investors who forced Kalanick to step back from his position in June after a series of setbacks.

Investors Ron Burkle of Yuciapa Companies, Adam Leber- an angel investor working for a music frim known as Maverick, and Shervin Pishevar from Sherpa Capital, wrote a mail to board members and shareholders on Friday demanding for Benchmark to eliminate itself from the board and divest considerable amount of its shares so much so that it should no longer bear the rights to appoint any other board seat.

You may be interested

Smart Nanotechnology Enlivens Wooden Ships and Artifacts
Business
Business

Smart Nanotechnology Enlivens Wooden Ships and Artifacts

Mohit Joshi - January 28, 2019

Scientists developed an innovative approach using ‘smart’ nanocomposites to conserve 16th-century British warship, the Mary Rose, and its artifacts. Shipwrecks are preserved in sediments under cold water,…

Researchers Discovered New Properties of Ferroelectric Crystal
Business
Business

Researchers Discovered New Properties of Ferroelectric Crystal

Mohit Joshi - January 25, 2019

Researchers discovered new properties of ferroelectric crystal, according to a study published on July 10, 2018. This study was conducted by a team of researchers from China.…

Researchers Develop Novel Antibody to Knockdown of Protein in Vertebrates
Healthcare
Healthcare

Researchers Develop Novel Antibody to Knockdown of Protein in Vertebrates

Mohit Joshi - January 24, 2019

Researchers from Technische Universität Dresden developed a synthetic antibody that improves functional analysis of proteins. A research led by Dr. Jörg Mansfeld of the Biotechnology Center of…

Most from this category