MCELRATH v. KALANICK

No. 181, 2019.

224 A.3d 982 (2020)

Lenza H. MCELRATH, III, derivatively on behalf of Uber Technologies, Inc., Plaintiff Below, Appellant, v. Travis KALANICK, Garrett Camp, Ryan Graves, Arianna Huffington, Yasir Al-Rumayyan, William Gurley, David Bonderman, Defendants Below, Appellees. and Uber Technologies, Inc., Nominal Defendant Below, Appellee.

Supreme Court of Delaware.

Decided: January 13, 2020.


Attorney(s) appearing for the Case

Michael J. Barry, Esq. (argued), John C. Kairis, Esq. , Kimberly A. Evans, Esq. , GRANT & EISENHOFER P.A., Wilmington, Delaware; Jeffrey Reeves, Esq. , Atlanta, Georgia; Attorneys for Plaintiff-Appellant Lenza H. McElrath, III, derivatively on behalf of Uber Technologies, Inc.

R. Judson Scaggs, Jr., Esq. , Susan W. Waesco, Esq. , Sabrina M. Hendershot, Esq. , MORRIS, NICHOLS, ARSHT & TUNNELL LLP, Wilmington, Delaware; Susan S. Muck, Esq. , Kevin P. Muck, Esq. , Marie C. Bafus, Esq. , FENWICK & WEST LLP, San Francisco, California; Attorneys for Defendants-Appellees Garrett Camp, Ryan Graves, Arianna Huffington, Yasir Al-Rumayyan, William Gurley and David Bonderman.

Donald J. Wolfe, Jr., Esq. , T. Brad Davey, Esq. , J. Matthew Belger, Esq. , Jacob R. Kirkham, Esq. , POTTER ANDERSON & CORROON LLP, Wilmington, Delaware; Joseph G. Petrosinelli, Esq. , Kenneth J. Brown, Esq. , WILLIAMS & CONNOLLY LLP, Washington, D.C.; Attorneys for Defendant-Appellee Travis Kalanick.

A. Thompson Bayliss, Esq. , Michael A. Barlow, Esq. , ABRAMS & BAYLISS LLP, Wilmington, Delaware; Mark Gimbel, Esq. (argued), C. William Phillips, Esq. , COVINGTON & BURLING, LLP, New York, New York; Bryant Pulsipher, Esq. , COVINGTON & BURLING, LLP, San Francisco, California; Attorneys for Nominal Defendant-Appellee Uber Technologies, Inc.

Before SEITZ, Chief Justice; VALIHURA, and TRAYNOR, Justices.


In 2016, Uber Technologies, Inc. acquired Ottomotto LLC to gain more traction in the autonomous vehicle space. The acquisition was high risk from the start. Although Uber ostensibly bought a company, and paid only $100,000 up front, it hired key employees from Google's more mature autonomous vehicle program. Uber took some...

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