Then-General Counsel Salle Yoo “expressed reservations” about acquisition of Otto

In summer 2016, Uber then-CEO Travis Kalanick sought to acquire a startup called Otto which specialized in self-driving vehicles. According to Bloomberg, then-General Counsel Salle Yoo “expressed reservations about the deal” and insisted on hiring Stroz Friedberg (cyber investigators) to assess any impropriety including the possibility, already known to her and Kalanick, that Otto co-founder Anthony Levandowski was bringing files from Google, his former employer.

Bloomberg reports that Uber’s board wasn’t aware of these concerns, the Stroz findings, or Levandowski’s retention of Google files.

Board hired law firm to investigate internal competitive intelligence efforts

Bloomberg reports that Uber’s board hired an external law firm “to question security staff and investigate activities” overseen by Joe Sullivan, Uber’s Chief Security Officer. Bloomberg says the investigation specifically included COIN, the Competitive Intelligence program whereby Uber collected information about drivers and activity at Grab (via a system Uber called Surfcam) as well as Lyft (via Hellother Sullivan efforts including surveilling competitors and certain employees, as well as vetting potential hires.

Security officer designated as attorney

Bloomberg reports that Uber’s Chief Security Officer, Joe Sullivan, was also assigned the title of deputy general counsel. Bloomberg notes the importance of this designation: it “could allow him to assert attorney-client privilege on his communications with colleagues and make his e-mails more difficult for a prosecutor to subpoena.”

Hired private investigators to monitor employee, surveil competitors, and vet potential hires

Bloomberg reports that Uber hired private investigators to monitor an employee, China strategy chief Liu Zhen. It seems Uber’s concern was that Liu’s cousin Jean Liu is president of ride-hailing competitor Didi Chuxing.

Bloomberg further reports Uber surveilling competitors, and conducting “extensive vetting on potential hires.”

The use of private investigators was overseen by Joe Sullivan, Uber’s Chief Security Officer, through a team called Strategic Services Group.

Kalanick “promoted” then-General Counsel Yoo to sideline her

As then-Genreal Counsel Salle Yoo pushed for Uber to comply with the law, then-CEO Travis Kalanick reassigned her from General Counsel to Chief Legal Officer. Kalanick styled this as a promotion, but Bloomberg says his “true intention was to sideline her from daily decisions” (based on assessment from two employees who worked closely with them).

Legal department “spirit of rule-breaking”

Bloomberg reported that then-CEO Travis Kalanick encouraged then-General Counsel Salle Yoo to create a legal department with what Bloomberg called a “spirit of rule-breaking.” In a performance review, Kalanick told Yoo she needed to be more “innovative.” Bloomberg reports that Yoo considered herself “liberated” by not having to follow “best practices,” being allowed “to do things the way I think things should be done, rather than the way other people do it.” But Bloomberg says Yoo failed to challenge Kalanick and his deputies, or raise objections to Uber’s board.

Due diligence report on Otto and Anthony Levandowski revealed copying of Google information

Forensics firm Stroz Friedberg investigated the information Anthony Levandowski allegedly took from Google and whether or how it was destroyed. Stroz’s report conveys Levandowski’s admission that he had five discs of Google information which he says he destroyed (a claim Stroz was unable to verify).

Stroz found about 50,000 Google work emails on Levandowski’s personal computer, and there was evidence that he accessed some of the emails at about the same time he left Google, making it “difficult to believe” that he could not remember having those emails, as he claimed when interviewed.

Stroz found that Levandowski accessed certain Google files after his departure, then deleted them. Stroz also found evidence of Levandowski searching for instructions on secure file deletions, and telling coworkers to delete messages from him. These deletions are consistent with an attempt to destroy confidential Google information that Levandowski should not have had, but also consistent with a cover-up of information previously received and used.

A Google spokesperson said in a statement: “The Stroz Report unequivocally shows that, before it acquired his company, Uber knew Anthony Levandowski had a massive trove of confidential Waymo source code, design files, technical plans and other materials after leaving Google; that he stole information deliberately, and repeatedly accessed it after leaving Waymo; and that he tried to destroy the evidence of what he had done. In addition, Mr. Levandowski used his smartphone to take thousands of covert photographs of computer screens displaying Google confidential files. Knowing all of this, Uber paid $680 million for Mr. Levandowski’s company, protected him from legal action, and installed him as the head of their self-driving vehicle program.”

Uber Executive invoked Fifth Amendment; company fired him

Accused of stealing driverless car technology from Google (his former employer), Uber executive Anthony Levandowski invoked the Fifth Amendment and refused to testify.

In response to Levandowski’s refusal to cooperate in Uber’s response to Google (Waymo) litigation alleging that Uber stole Google/Waymo secrets, Uber fired Levandowski.

In a letter to Levandowski, Uber terminated him for cause. Uber noted its requirement that he cooperate with the litigation, which he did not do. Uber also noted that his employment agreement warranted that he had returned or destroyed all property and confidential information from any prior employer, but said that Levandowski’s actions gave Uber grounds to allege breach of these commitments.

See also Uber’s May 15, 2017 letter to Levandowski demanding that he comply with a court order, waive his Fifth Amendment protections, and cooperate with Uber’s defense of Google’s lawsuit. See also Levandowski’s May 18, 2017 motion asking the court to modify its order to avoid compelling Levandowski to waive his Fifth Amendment rights.

Former CEO Travis Kalanick unilaterally appointed two board members

Former Uber CEO Travis Kalanick appointed two new members to the Uber board. Kalanick explained in a statement:

“I am appointing these seats now in light of a recent Board proposal to dramatically restructure the Board and significantly alter the company’s voting rights. … It is therefore essential that the full Board be in place for proper deliberation to occur.”

Kalanick was responding to a proposal from Benchmark Capital, a large shareholder in Uber, seeking to eliminate super-voting power of shares held by Kalanick, other early executives, and investors. With two more board members receptive to Kalanick’s perspective, Benchmark’s proposal is correspondingly less likely to proceed. (Forbes called the appointees “presumed allies” to Kalanick.)

An Uber spokesperson indicated that Kalanick’s appointment of two new board members “came as a complete surprise to Uber and its board.” The New York Times reported that new Uber CEO Dara Khosrowshahi called Kalanick’s move “disappointing” in an internal memo to employees. Bloomberg reported that the appointment was contrary to a prior agreement associated with Kalanick’s resignation.

The New York Times called Kalanick’s approach a “power move.” Former Uber adviser David Plouffe indicated that events at Uber were crazy and that the Trump white house “seems sane by comparison.”

Texas firemen retirement fund claims Uber misled them about risks and law-breaking

In a lawsuit, the Irving Firemen’s Relief & Retirement Fund alleges that Uber and its former CEo Travis Kalanick knowingly misled them while raising funds, including failing to disclose that the company had broken laws.

The lawsuit chronicles a variety of Uber improprieties including “Greyball” evasion of law enforcement, “Hell” tracking of rivals, allegations of intellectual property theft from Google, sexual harassment and other human resources violations, knowingly renting out recalled and unsafe vehicles, and theft of a passenger’s medical records.

The lawsuit seeks class-action treatment for Uber investors.

complaint