Attack of the Indirect Investor, Again
A Texas-based retirement fund that does not own any Uber securities sued Uber and its former chief executive officer Travis Kalanick for making misleading statements to investors.1 The retirement fund claims that it was harmed when the value of its indirect investment in Uber fell after investors learned that Uber was “operating a business far different than what investors had been led to believe.”
The retirement fund does not own any Uber securities. Rather, it owns an interest in a Delaware limited partnership managed by Morgan Stanley Investment Management Inc. which was formed for the purpose of investing in Uber’s Series G preferred shares. In short, the fund invested in Uber securities indirectly through another entity.
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