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Los Angeles Times
Los Angeles Times
Business
David Pierson

Benchmark Capital fires back at Uber co-founder Travis Kalanick

Benchmark Capital Thursday brushed aside Uber co-founder Travis Kalanick's response to a lawsuit filed against him by the venture capital firm.

In new court filings, Benchmark said Kalanick failed to disprove the firm's claims he committed fraud and breached his fiduciary duty before he was ousted as chief executive of the ride-hailing company.

The filings come a week after Kalanick shot back at Benchmark, an early Uber investor, by calling its lawsuit against him a "smear campaign" and an "ambush" less than two weeks after his mother's funeral.

Benchmark filed its lawsuit this month, alleging that Kalanick in 2016 misled Uber into approving three new seats on the company's board of directors and granting him appointment powers. Kalanick resigned as CEO in June under pressure after a series of controversies and missteps.

"Mr. Kalanick's papers do not dispute the overwhelming factual basis for Benchmark's allegations that Mr. Kalanick committed fraud and breached fiduciary duties in connection with the 2016 stockholder vote that created the three board seats at issue," Benchmark said it its new court filing.

A spokesman for Kalanick, who wants the dispute to go to arbitration, again dismissed Benchmark's suit in a statement Thursday.

"Benchmark's suit relies on meritless, personal attacks against Travis Kalanick that have no basis in law or fact," the statement said. "Benchmark's shameful tactics and unfounded claims punish Uber, its employees and its investors at a critical time when the company most needs stability and leadership."

In its filings to the Delaware Chancery Court, Benchmark also reiterated its desire for a status quo order that would prevent Kalanick from filling two vacant board seats. Without it, the Menlo Park, Calif., venture capital firm argues Kalanick can interfere with Uber's search for a new CEO.

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