San Francisco virtual reality startup UploadVR settles 'kink room' lawsuit

SAN FRANCISCO - The San Francisco virtual reality startup accused of bringing prostitutes to a work party and setting up an office “kink room” for sexual escapades has resolved the explosive lawsuit that brought those claims to light.

Elizabeth Scott, who had worked for San Francisco-based UploadVR as director of digital and social media, sued her former employer in May, claiming the company's “rampant sexual behavior and focus” made it an unbearable place to work.

Upload co-founder and CEO Taylor Freeman confirmed to this news organization on Thursday that “the matter has been concluded,” but did not provide more details. TechCrunch reported Wednesday that Upload reached a settlement with Scott to resolve the lawsuit.

Scott, who had sued Upload for discrimination, sexual harassment and retaliation, did not immediately responded to a request for comment.

The company has made changes since the lawsuit was filed, including appointing Anne Ahola Ward as its first chief operating officer in June. Upload also brought in a human resources team, Ward said, which facilitated other steps, such as writing an employee handbook, putting in place procedures for reporting issues, and formalizing company guidelines and job descriptions. Other changes were more minor - such as launching an employee of the month program, and setting up team meetings, she said.

“It's a small, growing startup, so we've really skipped some steps,” Ward said. “So we're working on retracing our steps and building.”

Ward had been working with Upload as an outside consultant since May 2016. She said that when the lawsuit hit, she offered up her help to the company's management, and they responded by making her COO.

In a blog post she published last week, Ward emphasized her focus on building Upload's infrastructure and giving back to the community. She's working on a scholarship program, she said.

“Above all else I want to make it clear that Upload is a place where everyone is welcome,” Ward wrote in the blog post. “Everyone. We will not tolerate discrimination on the basis of age, race, color, religion, gender, gender expression, disability or sexual orientation.”

Scott's lawsuit claimed Upload - which offers VR-focused training, coworking space, events and news - encouraged sexual conduct at work, with employees even setting up an office “kink room,” where underwear and condom wrappers were often found. Upload employees invited prostitutes and strippers to a party during a conference in Los Angeles, Scott claimed. She said another party during a San Jose conference was “rife with sexual impropriety.”

Scott claimed she and her female co-workers were excluded from work lunches and meetings and left off important emails, and instead were required to perform menial tasks like cleaning the kitchen. She says she was fired after complaining about harassment at work. She left the company in March, according to her LinkedIn profile.

Ward declined to comment on the allegations of the suit, including the existence of a “kink room.”

“I never saw anything like that,” she said. “I was never part of anything like that.”

Upload's co-founders Freeman and Will Mason denied the allegations back in May.

“We are confident that the true nature of how we treat our employees and how we operate as leaders will shine through this unfortunate situation and confirm that these allegations are entirely without merit,” they wrote in an emailed statement.

The resolution of the Upload lawsuit comes on the heels of a series of sexual harassment allegations in the Silicon Valley tech community. A former Uber engineer accused her manager of sexual harassment in February, and several female entrepreneurs have come forward recently to report unwanted advances by male venture capitalists.

In a tweet Monday, Scott urged other women to follow her lead and stand up to “show that sexism has no place in the VR/AR industry.”