- REUTERS/Adnan Abidi
A Texas-based retirement fund that invested in Uber is suing the company and its former CEO Travis Kalanick, accusing the company of making misleading statements about its business to drum up billions of dollars in investment starting in June 2014.
Irving Firemen’s Relief & Retirement Fund filed the lawsuit in California federal court on Tuesday. The lawsuit does not say how much the retirement fund is seeking but alleges that Uber has lost at least $18 billion in private market value as a result of a series of scandals and controversies.
The retirement fund, through a Morgan Stanley fund, invested $2 million in Uber at a $62.5 billion valuation in February 2016, according to The Wall Street Journal.
“In a span of only a few months a shocking litany of corporate misconduct came to the fore, and investors learned startling truths about the willingness of Uber’s C-Suite executives to flout local, national and international law, stifle competition, misappropriate trade secrets and seek vengeance against detractors,” the suit claims. “The Company’s vaunted corporate culture was revealed to in truth consist of a toxic hotbed of misogyny, sexual discrimination, and disregard for the law that threatened the Company’s reputation, business and prospects.”
“Kalanick and Uber failed to disclose that, in order to show strong short-term growth, the Company was employing and plotting to employ a variety of illicit business tactics that threatened Uber’s business, reputation and long-term prospects,” the suit claims.
Additionally, the suit delves into Uber’s ongoing lawsuit with Waymo, the self-driving-car company spun out of Google; the theft of a passenger’s medical records after she was raped by an Uber driver; and the findings of the investigation, led by former Attorney General Eric Holder, that examined Uber’s corporate culture after several allegations of sexual harassment and discrimination arose.
An Uber representative declined to comment. A representative for Kalanick also declined to comment.
You can read the lawsuit here: