Travis Kalanick Given a Lifeline by a Delaware Court

The former chief executive officer of Uber Travis Kalanick has been given a lifeline by an American judge after his case was moved to arbitration. The former CEO has...

The former chief executive officer of Uber Travis Kalanick has been given a lifeline by an American judge after his case was moved to arbitration. The former CEO has been engaged in a fierce legal battle with a venture firm called Benchmark. The venture firm wants him to be kicked out of the board of management of Uber. The decision was made by Delaware Chancery Court Judge known as Samuel Glasscock. For the last few months, Benchmark has brought to court a number of cases, and this is one on them. Benchmark happens to be the largest shareholder in Uber and also the earliest. This gives the former chief executive the chance to hide some embarrassments that would have arisen should the case had gone public. On his part, the judge made a ruling that he would not dismiss the claim. Instead, he opted for the case to go to arbitration. At arbitration, it will be discussed whether the case should be handled in court or arbitration. The Benchmark lawyers explicitly said that they were willing to allow some parts of the complaint to go to arbitration. The judge was clear that the stakeholders who were not involved in the arbitration process could decide to sue the two parties. However, he said that he would address the issue when it arises.

Mr. Kalanick is being accused of not revealing important information related to the way the company operated in 2016. This made it possible for him to control the board at that time. A spokesman speaking on behalf of Mr. Kalanick said that he was pleased with the outcome. The spokesman also said that they were confident that his client would also carry the day in arbitration. He also said that the comments by Benchmark are untrue and brought harm to Uber unnecessarily. On their part, Benchmark though a spokeswoman said that they would continue to bring facts to light as the case progressed. The spokeswoman further insisted that the case is solely based on values and integrity. This lawsuit comes days after Uber announced Dara Khosrowshahi as their new chief executive officer. With Uber being one of the most valuable companies in the world held privately, this lawsuit is being followed closely by investors in Silicon Valley. At the moment, Uber is valued at $68.5 billion. The lawsuit was attended by some early investors of Uber such as Stephen Russell and Shervin Pishevar. The two are not happy about the turn of events.

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