The selection of a new CEO by Uber’s board of directors has not quashed the legal fight between its members.
Lawyers for ousted CEO Travis Kalanick on Monday filed new papers in the lawsuit brought by Benchmark, the venture firm that is suing Kalanick for fraud. Despite their disagreements over Uber’s direction and over the CEO search, both Benchmark and Kalanick remain on the board.
And the lawsuit is still brewing.
If the judge does not allow the case to go to arbitration, it “would expose the company to significant and unnecessary harm for no reason other than Benchmark’s desire to use this forum to publicly slander Mr. Kalanick with its fabricated allegations,” Kalanick’s lawyers write.
Uber’s proposed new CEO, Dara Khosrowshahi, was presented as a “truce” candidate between the warring sides — but will still have to navigate the unabated board tension along with the lawsuit, which has yet to show signs of calming.
Meg Whitman, Benchmark’s hand-picked choice for CEO, intended to end the in-fighting on the board and limit Kalanick’s role at the company. It’s unclear how Khosrowshahi is thinking about his predecessor’s involvement in Uber.
Benchmark said on Monday that the appointment of Khosrowshahi did not change their legal plans.
Early Uber investor and vocal opponent of Benchmark’s lawsuit Shervin Pishevar said he applauded Khosrowshahi’s appointment.
“I applaud the Board’s decision to make Dara Khosrowshahi the next CEO of Uber, and we are gratified that Benchmark did not succeed in subverting the CEO selection process,” Pishevar said in a statement. “I look forward to working with my friend and fellow Iranian American Mr. Khosrowshahi. Dara's experience and his proven track record of success make him the right choice to lead Uber.”
The first hearing of the case is scheduled for Wednesday afternoon in Georgetown, Del.
This article originally appeared on Recode.net.