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by aresant 3234 days ago
Among the complaints of bad behavior:

"Kalanick [aquired] a self-driving startup that, according to a confidential report not disclosed to Benchmark (the "Stroz report") allegedly harbored trade secrets from a competitor . . . "

The Stroz Report was created when "Otto and Uber jointly hired an outside forensic expert Stroz Friedman. Friedman interviewed employees, including Levandowski and Lior Ron, reviewed their digital devices like mobile phones and cloud storage, and prepared a report recording the results of the investigation. . . Uber dangled a huge carrot for Levandowski to be truthful . . and agreed to indemnify him for any prior bad acts he confessed to committing. In other words, if Levandowski told Stroz what he stole, then the high priests at Uber have absolved him of his civil sins and Uber will pay for any resulting lawsuits or penalties"(1)

Maybe I'm reading between the lines, but it seems like they're saying in black & white that the Stroz report contains incriminating evidence that Levandowski DID "harbor trade secrets" from Google which will materially impact the outcome of Ubers broader legal woes . . .

EDIT - Reading further in the actual complaint ""if the contents of Stroz's interim findings had been disclosed to Benchmark at the time, they would have had a material impact on Benchmark's decision to authorize the board seats . . ." (2)

Sounds quite a bit like a smoking gun, that Benchmark probably realizes now is going to come to light.

(1) https://medium.com/@nikhilgabraham/why-anthony-levandowski-h...

(2) https://www.documentcloud.org/documents/3922911-67730336-DE-...

2 comments

RE the stroz report: from what I've heard, AL did take a bunch of files, and he planned to use as leverage against google/waymo to get his 120m bonus, and Uber told him more or less "dont let that shit touch anything we do". He also had some kind of big google earth photo taking kit at his house for long after he quit google.
well, no problem then. just stealing your employer's property to use to use for extortion. what a nothingburger.
They had previously refused to pay him wages that they had agreed to pay.

It is common in parts of the programming world — especially when dealing with untrustworthy clients — to keep a way to take their IP/disable their website/turn off their domain/etc unless they pay you on time.

No it's not. Illegally holding on to property that's not yours isn't leverage - its theft and leaves you open to prosecution. If you have a contract with someone and they're in breach then the courts provide you an avenue for relief - not blackmail.
If this was his intention this is a really dumb strategy. He went from having a valid lawsuit for his bonus to loosing his company and being at the loosing end of a lawsuit. I don't buy him being that dumb. He just didn't think he was going to get caught.
i have never seen this behavior, so it isn't that common, and even if it were it would still be illegal unless it is something that has been agreed to contractually.
The way to read it is, there is a report, Benchmark (the board) was not aware of it. It's an acknowledgement of the report - as it is from the court case - but not about its content.
If there wasn't anything bad in the report we wouldn't be having this conversation.
If there was anything bad in the report they would have come out and said so in the complaint. It's not a magic game of telephone.

they would have had a material impact on Benchmark's decision is probably the weakest possible complaint.

Benchmark has a very strong interest in not publishing more negative stuff about Uber than they absolutely have to to gain control. They're the largest shareholder and need to liquidate their position in the near future; any wrongdoing beyond what they absolutely must claim to get a judge to hear their evidence behind closed doors is not in their self-interest.
They have a conflict of interest there. They need to do what they can to get as much control as they can without damaging the value of their shares. There is no fine line there, there is considerable overlap and no matter what they do their shares will drop in value. It's a risky game at best.