Benchmark Capital and former CEO of Uber, Travis Kalanick, have come to an agreement to end the lawsuit filed by the firm against Kalanick. The dispute between the two parties started back in August of 2017, when Benchmark filed a lawsuit against Kalanick in a Chancery Court in Delaware, accusing him of fraud, breach of contract, and breach of fiduciary duty.
This lawsuit forced the CEO of the ride hailing company to step down and also withdraw his ability to fill three board seats. Benchmark, who had been an investor in Uber in its earlier days, then agreed to drop the lawsuit. This came after the two parties agreed on an investment deal between Uber and a group of investors headed by Softbank Group Corp.
The deal was signed off, which comprises a large purchase of shares from existing Uber investors and employees at the cost of company’s valuation, which was $48 billion. This valuation is a 30 percent reduction in comparison to the previous valuation of $68 billion.
For the first time, Kalanick sold a small piece of his shares in Uber. However, he still retains 7% stake and took in a whopping $1.4 billion from the sale of his shares to Softbank.