Saturday, 28 March 2015

Ellen Pao Loses Silicon Valley Bias Case Against Kleiner Perkins

 28/03/2015
SAN FRANCISCO — One of Silicon Valley’s most famous venture capital firms prevailed on Friday over a former partner in a closely watched suit claiming gender discrimination, but hardly got away unscathed.
The plaintiff, Ellen Pao, had accused the firm, Kleiner Perkins Caufield & Byers, of discriminating against her in the course of her employment and eventual dismissal.
The decision handed Kleiner a sweeping victory in a case that had mesmerized Silicon Valley with its salacious details while simultaneously amplifying concerns about the lack of diversity in the technology industry.
Even with her loss in the case, Ms. Pao’s suit succeeded in prompting debate about women in technology and venture capital, said Deborah Rhode, a law professor at Stanford University.
“This case sends a powerful signal to Silicon Valley in general and the venture capital industry in particular,” Ms. Rhode said. “Defendants who win in court sometimes lose in the world outside it.”
Kleiner and its lawyers did little to celebrate the win, with the lawyer Lynne C. Hermle saying that it “never occurred to me for a second that a careful and attentive jury like this would find either discrimination or retaliation.” Kleiner issued a statement saying it was committed to supporting women.
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Ellen Pao spoke to the news media after a jury rejected her claims of gender discrimination on Friday. Credit Jim Wilson/The New York Times
Ms. Pao waved to the jury as she left the courtroom for the last time, a smile fixed on her face. “If I’ve helped to level the playing field for women and minorities in venture capital, then the battle was worth it,” she said in a brief news conference.
Her suit, filed in Superior Court here, claimed that Kleiner did not promote her because of her gender, that it retaliated against her for complaining, that it failed to prevent gender discrimination and that it fired her in 2012 for complaining.
The suit asked $16 million in compensatory damages plus punitive damages. Ms. Pao is now interim chief of the social media news site Reddit.
After the jurors rejected each of her four claims, they were found to be one vote short on a claim about her termination. For two hours, doubt reigned, the media unspooled possible outcomes and the jury went back to work. In the end, the problem seemed more juror confusion than anything else, and the claim went down with the others.
The jurors said in interviews they did not take on the role of “conscience of this community,” as one of Ms. Pao’s lawyers had urged in the closing arguments. They focused on the facts at hand, and concluded it was Ms. Pao’s own performance that held her back.
One juror, Steve Sammut, 62, said it was difficult coming to a verdict.
“We were split there for a while,” he said, adding that a key point was how Ms. Pao’s reviews at Kleiner deteriorated over time. He also said the witnesses for Kleiner, most of whom came from the firm, helped seal the case.
Another juror, Marshalette Ramsey, 41, said she believed Ms. Pao was discriminated against. The male junior partners at Kleiner “had those same character flaws that Ellen was cited with,” but they were promoted, she said.

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