The suit centers around the creation of three additional board seats at Uber in June 2016. At the time, Kalanick inserted a provision that gave him the "absolute right" to select three directors to fill the seats. Kalanick selected himself to fill one of the seats following his departure as CEO.
Benchmark Capital is saying they would never have approved the board expansion had it been aware of the controversy surrounding Kalanick and Uber's cultural problems, accusing the former CEO of mismanagement and packing the board with supporters.
Axios' Dan Primack was first to report the news on Thursday.
Benchmark Capital is now calling for Kalanick's removal from Uber's board. Benchmark Capital, which has a board seat at Uber, first invested $11 million in the company during its Series A funding round in 2011.
"In 2016, Kalanick fraudulently obtained control of three newly created seats on Uber’s Board by his material misstatements and fraudulent concealment from Benchmark of material information that would have led Benchmark to reject the creation of the seats," Benchmark Capital wrote it its complaint.
Uber wrote in a statement that the lawsuit is "without merit and riddled with lies."
"The lawsuit is completely without merit and riddled with lies and false allegations. This is continued evidence of Benchmark acting in its own best interests contrary to the interests of Uber, its employees and its other shareholders. Benchmark's lawsuit is a transparent attempt to deprive Travis Kalanick of his rights as a founder and shareholder and to silence his voice regarding the management of the company he helped create. Travis will continue to act in the interests of Uber and all of its stakehodlers and is confident that these entirely baseless claims will be rejected."
You can read Benchmark Capital's full complaint below:
This story is developing...
This post originally appeared on Business Insider.