Venture capital firm, Sequoia Capital decided to operate their firm without their longtime partner, Michael Goguen following the sexual abuse claims and his failure to pay for settlement for the victim. Goguen had been a co-manager of the venture capital firm for nearly 20 years.
According to Market Watch, plaintiff, Amber Baptiste filed a breach of contract lawsuit against Michael Goguen last week on San Mateo County Superior Court in California. Baptiste claims on her lawsuit, that Goguen "sexually, physically and emotionally" for more than 13 years. The lawsuit continues, Goguen accepted the agreement, paying her $10 million in compensation but balking the rest of $30 million.
Goguen, who had been a long partner to Sequoia Capital, denied the claims through a statement released on Saturday. He explained they "came at the end of a lengthy romantic relationship with the plaintiff that ended badly". Goguen added he plans to file a cross-complaint on Monday for extortion claims.
Sequoia Capital stated on a Twitter post on Thursday that they were not aware of Michael Goguen's allegations against him. "We understand the allegations about Michael Goguen are unproven and unrelated to Sequoia. Still, we decided his departure was appropriate," Biz Journal quoted.
In response to the issue, Goguen also issued a statement saying, "This matter is purely personal and has no connection to Sequoia. My departure from there allows me to focus with full force on clearing my name and vigorously pursuing justice," he said.
Sequoia has been one of the most successful venture firms on Sand Hill Road in Menlo Park, an early backer of tech giants including Google Inc., now Alphabet Inc., Apple Inc. and Oracle Corp. It currently has 27 private companies in its portfolio that are worth $1 billion or more, the most of any VC firm, according to Wall Street journal.
Goguen's board seats would be transferred to others at the firm. He was a director at 10 companies, including online lender Elevate Credit.
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