In response to a Delaware lawsuit by Uber investor Benchmark Capital Partrners, other investors in Uber asked Benchmark to sell its shares and step down from Uber’s board. Full letter from the other investors. In part:
We do not feel it was either prudent or necessary from the standpoint of shareholder value, to hold the company hostage to a public relations disaster by demanding Mr. Kalanick’s resignation, along with other concessions … Accordingly, we would request that Benchmark help the Company realize its full potential by allowing the necessary work to be done in the Board Room rather than the Courtroom.
Axious summarized the situation: “It was shocking enough for a major venture capital firm to sue the CEO of a highly-valuable portfolio company. For other VC firms to then make this sort of counter-move against a peer is similarly unprecedented. It’s a brave new world in Silicon Valley.”