Tech: Former Uber CEO Travis Kalanick sued for alleged fraud by early Uber investor Benchmark Capital

The VC firm and early Uber investor is also suing Kalanick for alleged breach of contract and breach of fiduciary duty, according to Axios.

Early Uber investor Benchmark Capital is suing former Uber CEO Travis Kalanick for alleged fraud, Axios' Dan Primack first reported on Thursday. The VC firm is also suing Kalanick for alleged breach of contract and breach of fiduciary duty.

The lawsuit centers around the creation of three additional board seats at Uber in June 2016, which Kalanick filled (and later took one of the spots following his departure as CEO). Now, Benchmark Capital is saying they would never have approved the board expansion had it been aware of the controversy surrounding Kalanick.

The kicker? Benchmark Capital wants Kalanick removed from Uber's board for good.

"In 2016, Kalanick fraudulently obtained control of three newly created seats on Uber’s Board by his material misstatements and fraudulent concealment from Benchmark of material information that would have led Benchmark to reject the creation of the seats," Benchmark Capital wrote it its complaint.

Benchmark Capital, which has a board seat at Uber, first invested in the company during its Series A funding round in 2011. The firm filed its complaint Thursday in Delaware Chancery Court.

"Kalanick’s overarching objective is to pack Uber’s Board with loyal allies in an effort to insulate his prior conduct from scrutiny and clear the path for his eventual return as CEO—all to the detriment of Uber’s stockholders, employees, driver-partners, and customers," the complaint says.

You can read Benchmark Capital's full complaint below:

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The VC firm and early Uber investor is also suing Kalanick for alleged breach of contract and breach of fiduciary duty, according to Axios. Read Full Story