Kleiner Perkins Caufield & Byers partner Ellen Pao is suing the venture capital firm for sexual harassment and discrimination that she says has occurred over a six year period at the firm.

Pao, who joined the firm in 2005, alleges that former Kleiner partner Ajit Nazre made sexual advances to her over the years and then worked to harm her career once she rebuffed him.  She also alleges that KPCB engaged in systematic discrimination against women, such as, allowing female junior partners fewer board seats and investment sponsorships compared to male junior partners, and allocating women a smaller percentage of profits.

According to TechCrunch, which first reported the suit, Pao’s lawsuit alleges the following harassments and repercussions she has faced at the firm:

• Pao first received “inappropriate sexual advances” from fellow junior partner Ajit Nazre in February 2006 on a business trip to Germany.  She rebuffed his advances.

• A few months later, however, after continued advances by Nazre and after him falsely telling Pao that his wife left him, Pao “eventually succumbed to Mr. Nazre’s insistence on sexual relations on two or three occasions.”

• In October 2006, when Pao informed Nazre that their personal relationship was over, she alleges that “Nazre started a consistent pattern of retaliation against her”.  He retaliated by excluding her from business meetings, removing her from email discussions, failing to share information she needed for her job, blocking her from interviewing new employees, and more.  All this lasted more than five years.

• Pao also alleges that Senior Partner Randy Komisar came into [Pao's] office and gave her a book containing many sexual drawings and poems with strong sexual content.  She also alleges that MR. Komisar asked her out on a sexual date, alluding to her that his wife was out of town. Pao said she declined the invitation. However, when Pao reported the situation, the suit says,  “she was told that it was unfair, that it would never have happened to a male partner, but that she should just accept it.”

• Pao also claims that other women at KPCB were subjected to sexual harassment. According to the suit, “at least three administrative assistants complained that they were being harassed or discriminated against by KPCB partners in May 2007.”

• In the suit, Pao said when she complained to HR and management, she was told that “she would not be successful at KPCB because she complained and that going forward she should drop her complaints, because no one would do anything about them.”  Ray Lane, a senior Kleiner partner, allegedly asked Pao to let go of her complaints and even encouraged her to have a romantic relationship with Nazre.
• Pao in her lawsuit also said that the company deliberately excluded women from events. Last year, partners at the firm organized two all-male dinners for select partners, executives at Kleiner-funded companies, and a few other guests. One of the partners, Chi-Hua Chien, said women were excluded because they would "kill the buzz.”

The above are just highlights and there are many more accusations against KPCB.  Again TechCrunch has the full lawsuit included.

Meanwhile KPCB has issued the following statement by Christina Lee, a spokeswoman for Kleiner Perkins: “The firm regrets that the situation is being litigated publicly and had hoped the two parties could have reached resolution, particularly given Pao’s seven-year history with the firm. Following a thorough independent investigation of the facts, the firm believes the lawsuit is without merit and intends to vigorously defend the matter.”

This lawsuit could have major ramifications for both KPCB, as they are a blue-chip Silicon Valley venture capital firm, where reputations are key to relationships.  At the same time, this lawsuit may have a negative effect on hiring qualified women into the world of venture capital, as it could discourage women from joining, or discourage men from bringing women onboard.  Yet if the allegations are true, this could force not just KPCB to change its behavior, but the whole industry as well, where venture capital is a clubby, male-dominated world.

Pao is on the boards of Lehigh Technologies, Datameer and Flipboard. Before joining Kleiner, she worked at BEA Systems and Tellme Networks.