Solution:

-install nvidia 390 (or any older - check or switch using "Additional Drivers" 
app on Ubuntu ), and then, install:
-DisplayLink USB Graphics Software for Ubuntu 4.1 (or newer I guess)

Restart and done!

--
Key here as it seems is that you need to:

1) update graphic card's driver first
2) then uninstall current display link drivers  (sudo displaylink-installer 
uninstall)
3) install the display link drivers for Ubuntu (that is important - it must be 
last thing)

I have two additional monitors and 16.04 Ubuntu.

Write to me: acidosen@<put-google-mail-system>.com if it worked for you

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xorg in Ubuntu.
https://bugs.launchpad.net/bugs/1278223

Title:
  Mouse Flickering after adding 3rd Monitor

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xorg/+bug/1278223/+subscriptions

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