The lawsuit launched against former Uber CEO Travis Kalanick by investor Benchmark is officially over.
According to a report in Recode, a judge dismissed the case in court proceedings Thursday (Jan. 25) on the heels of a settlement between Kalanick and Benchmark. Benchmark had previously said it would drop the lawsuit once rideshare startup Uber put governance changes in place that took power away from both Kalanick and Benchmark.
“It is hereby stipulated and agreed, by and among Benchmark, Kalanick and Uber, through their undersigned counsel,” wrote Delaware Court of Chancery Judge Sam Glasscock III in his order, according to Recode, “that this Action and the claims asserted therein are dismissed with prejudice, and that each party shall bear its or his own costs, fees and expenses.”
The end to the lawsuit comes as Kalanick is selling close to one-third of his 10 percent stake in Uber for $1.4 billion, according to recent news reports. The move is part of a deal with Japanese telecommunications company SoftBank, which now owns 17.5 percent of Uber — a position mostly gained by buying out early investor and employee shares in the firm. Those agreements were finalized in late December 2017 and will close in early 2018, according to the company.
Kalanick, who was ousted as Uber's head in June after a string of scandals rocked the ride-sharing firm, had offered to sell off more of his stake — but there was a limit on how much SoftBank was looking to pick-up. Instead, Kalanick will officially be selling off 2.9 percent. Other investors were also unable to sell off as much of their stock as they wished.
With the sales, Kalanick will be a billionaire for the first time officially as opposed to on paper. This also marks his first sale of shares in the ridesharing firm he founded over a decade ago.