A judge has granted former Uber CEO Travis Kalanick a legal win on Wednesday by sending an explosive lawsuit brought by his investors to arbitration rather than ordering it to play out in his courtroom.
The arguments were made in a courtroom in Georgetown, Del., before Judge Samuel Glasscock of Delaware’s Court of Chancery.
Benchmark sued Kalanick after ousting him as CEO of the world’s most valuable privately held company, claiming that he defrauded them. The firm asked the court to remove him from Uber’s board, among other actions. Kalanick, Uber’s founder, says he is the victim of a malicious slander brought by disgruntled investors.
Benchmark was seeking a status quo order that would effectively freeze Kalanick’s involvement in Uber business. Kalanick’s lawyers tried to move the case to arbitration, allowing him to avoid a possibly damaging deposition.
There is still risk with such a move. Arbitration rulings are typically binding and if Kalanick loses he won’t be able to appeal.