Ellen Pao will now have to pay back over $275,000 in legal fees to venture capital firm Kleiner Perkins. The figure was originally set at $973,000, but, after much negotiation, this number was substantially reduced. Pao and her lawyers described the original fees as “excessive.”
The 45-year-old accused Kleiner of sexual discrimination, and sought a lawsuit that could have cost her old firm a whopping $100 million. While it’s difficult to know what happened during Pao’s tenure at Kleiner Perkins, there have been allegations of inappropriate sexual advances and discussions about pornography, along with claims that she was threatened by a married coworker for ending their relationship.
In the aftermath of the case, Kleiner Perkins Caufield & Byers (KPCB) partner John Doerr expressed his disappointment with Pao’s decision to sue the firm, stating that he felt “betrayed.” During an interview with Bloomberg, Doerr offered the following words: “I was sick… it was painful. Ellen was a good chief of staff. But when I read the charges, I knew from that very moment that these had no merit.”
Doerr went onto explain that KPCB had tried to settle with Pao, on multiple occasions, outside of the courtroom; every time, the settlement deals were rejected. After Pao lost her case, KPCB requested $973,000 worth of court costs. KPCB offered to waive these costs, on the understanding Pao dropped her right to appeal the court’s ruling. Pao, then, countered this by asking for $2.7 million to cover her legal fees, claiming she would not appeal if KPCB capitulated to her demands.
According to Doerr, Pao was a good chief of staff, but simply did not have what it took to fill an investing partner role. In reflecting, Doerr said it was a “mistake” promoting Pao to a more senior position.
Indeed, as part of its defense, KPCB claimed Pao’s performance was not up to scratch. According to Yahoo! News, the firm previously accused Pao of demonstrating a sense of entitlement, and failing to work as part of a team.
Suspicious eyebrows were also raised when it transpired that Pao’s partner, Buddy Fletcher, was facing a series of legal problems. At the time, Fletcher had filed a lawsuit against the NYC apartment building in which he lived, and the hedge fund that he spearheaded was facing bankruptcy.