General Ellen Pao Loses Silicon Valley Bias Case Against Kleiner Perkins

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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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