Even as he stepped down it was widely believed he would remain part of the board but the latest development has clouded his future links with a company he founded in 2009.
Uber was blamed for ''toxic" company culture as the company faced a series of lawsuits filed by drivers over pay and treatment. In June, Uber had fired 20 employees for incidents involving discrimination, sexual harassment and bad behaviour.
Kalanick issued a statement calling the lawsuit "completely without merit and riddled with lies and false allegations." The statement accused Benchmark of "acting in its own best interests contrary to the interests of Uber" and denounced the legal action as a "transparent attempt to deprive Travis Kalanick of his rights as a founder and shareholder."
Uber and Benchmark Capital declined to comment.
The San Francisco based company operates in over 600 cities worldwide and boosts of over 12,000 employees, after Kalanick's exit the company is currently looking for a CEO but has made little headway.