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Uber investors seek to oust Benchmark after 'destructive' lawsuit: report

Uber investors seek to oust Benchmark after 'destructive' lawsuit: report
From Reuters - August 11, 2017

SAN FRANCISCO (Reuters) - A lawsuit filed by investor Benchmark Capital against ousted Uber Chief Executive Travis Kalanick has raised the ire of three investors who on Friday asked the venture firm to divest its shares and step down from the ride-services company's board, according to an email published by news website Axios.

Investors Shervin Pishevar of Sherpa Capital, Ron Burkle of Yucaipa Companies and Adam Leber, an angel investor who works for music company Maverick, signed the email and said Benchmark's lawsuit harms Uber Technologies Inc's [UBER.UL] valuation, interferes with fundraising efforts and impedes the company's search for a new CEO to replace Kalanick, according to the email sent to shareholders and board members.

Benchmark's tactics are "ethically dubious and, critically, value-destructive rather than value enhancing," the investors wrote in the email, according to Axios.

Reuters could not confirm email and representatives for the three investors and Benchmark did not immediately respond to a request for comment.

Benchmark filed a lawsuit on Thursday that seeks to force Kalanick off the board and accuses him of concealing a range of misdeeds and scheming to retain power at the company even after he was forced to resign as chief executive in June.

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