San Francisco Tech Startup Under Fire for Sexual Harassment and Gender Discrimination

The company culture at tech startups can commonly be characterized by a combination of informality, flexibility and innovation, along with a strong emphasis on collaboration. Startups tend to have less formal hierarchies and structures compared to larger corporations. This can lead to a more casual atmosphere where employees interact with each other and even with the founders more informally.

Amid a casual work environment, however, misconduct often goes unchecked. When workers speak up about unlawful treatment, they may face ostracization by their coworkers or retaliation from their employer. When the workplace is dominated by male workers and male leadership, female employees may feel like their complaints about sexual harassment or discrimination may not be taken seriously.

A San Francisco tech startup is facing several lawsuits filed by former employees, both women. The claims, brought in San Francisco Superior Court, accuse senior executives at Carta of sexual harassment, gender discrimination and retaliation.

One of the women was allegedly fired in retaliation for complaining about repeated instances of workplace sexual harassment. Carta, which is known for its equity management software, was described in the lawsuit as having “a well-documented and notorious reputation for misogyny and tolerance of sexual harassment.”

Alexandra Rogers, a former sales manager at Carta, filed the most recent lawsuit. She accused the company’s Chief Revenue Officer Jeff Perry of groping her at a work event in June 2022. The incident allegedly occurred while she was waiting in the restroom line. Perry also allegedly took a photo of Rogers and “inappropriately” showed it to her coworkers.

According to her claim, Perry engaged “in a sustained pattern of sexual harassment and retaliation” that led to Rogers’ termination. A few months after the above incident, Perry allegedly subjected her to inappropriate touching again at a company dinner. At that time, he was her immediate supervisor as she had gotten promoted.

Rogers reported the sexual harassment to human resources, expecting Carta to investigate the matter and discipline Perry. Instead, CEO Henry Ward singled her out and allegedly treated her “in an aggressive and demeaning manner” before colleagues at company meetings, the lawsuit said. Additionally, the company “repeatedly shifted blame” to Rogers. She was fired a month later in July 2023, “under the pretext of” downsizing via broader company layoffs.

Amanda Sheets, an account executive at Carta, filed the second lawsuit. Sheets claimed she was fired after asking for remote work accommodations for her chronic migraines in 2022. Management allegedly not only denied the accommodations but also heavily scrutinized them. Meanwhile, the lawsuit claimed male colleagues who worked remotely were not subjected to any scrutiny.

Sheets said she provided Carta with a doctor’s note and the required paperwork establishing her need for reasonable accommodations. However, she was fired several days later due to “sudden and previously unknown purported performance issues.” In her lawsuit, Sheets accused Carta of gender discrimination based on the way her request for disability accommodation was handled in comparison to her male coworkers.

Both lawsuits described Ward as retaliating against anyone who expressed concerns about Carta’s operations. Rogers said that workers who spoke up about unfair treatment were ignored or faced retaliation.

Perry and Carta both denied the claims and filed a defamation counterclaim against Rogers, alleging that she had “targeted Perry” and made false statements when she thought her job was at risk. The company argued Rogers was laid off due to months of poor performance and an unsuccessful presentation during a meeting. Her attorney said the counterclaim was simply a way for Carta to deflect blame and deny accountability.

The two lawsuits alleging misconduct are not isolated claims. Media reports by Fortune, Insider and The New York Times have also highlighted the problematic workplace culture at Carta and issues with the startup’s leadership. In early 2023, Carta settled a discrimination and wrongful termination lawsuit filed by the company’s former vice president of marketing.

If you have experienced unlawful treatment at work, discuss your situation with a knowledgeable San Francisco employment lawyer. While McCormack Law Firm is not involved with the Carta lawsuits, we are dedicated to protecting the rights of workers and equipped to handle all types of workplace disputes. Contact us today for a free consultation. We can advise you on your legal options for pursuing compensation.