Silicon Valley venture capital firm wins discrimination suit

SAN FRANCISCO – A jury decided Friday that a prestigious venture capital firm did not discriminate or retaliate against a female employee in a case that shined a light on gender imbalance and working conditions for women in Silicon Valley.

The jury in San Francisco reached the verdict in a lawsuit filed by Ellen Pao against Kleiner Perkins Caufield & Byers.

The lawsuit claimed Pao was fired when she complained about discrimination at the firm.

Jurors heard conflicting portraits of Pao during closing arguments. Her attorneys said she was an accomplished junior partner who was passed over for a promotion and fired because the firm used different standards to judge men and women.

Kleiner Perkins’ attorney, Lynne Hermle, countered that Pao failed as an investor at the company and sued to get a big payout as she was being shown the door.

“It never occurred to me for a second that a careful and attentive jury like this would find either discrimination or retaliation and I’m glad to have been proven right about that,” Hermle said about the verdict.

A study introduced as evidence during the trial showed that women are grossly underrepresented as partners in the venture capital sector. Industry consultants say the case has already sparked some technology and venture companies to re-examine their cultures and practices for potential gender bias.

During her testimony, Pao told jurors that her lawsuit was intended in part to create equal opportunities for women in the venture capital sector. Hermle, however, accused Pao of having less altruistic motives.

Jurors were asked to determine whether Kleiner Perkins discriminated against Pao because she is a woman; failed to take reasonable steps to prevent that discrimination; and retaliated against her after she complained by failing to promote her and then firing her.