a woman accuses michael goguen for years of sexual abuse and emotional trauma. he promised to pay her tens of millions for this alleged treatment. he has countersued and accused her of extortion. he was married during the more than 13-year relationship. he has since lost his job. >> $4 billion, $8 billion -- >> reporter: last year "forbes" magazine dubbed michael goguen one of the top investors. now the long-time managing partners faces accusations he amber batiste, for more than a decade. >> michael goguen was until the other day a venture capitalist at a firm called sequoia. they've got steaks in s e got steaks in s takes in apple, google and others. >> there are charges of sodomy, verb ball abuse, and require helloer to refer to him as a king and an emperor. despite those claims she's only suing him for breach of contract saying he would pay her $40 million for the compensation for the horror she suffered at his hands. after paying $10 million, she claims he refused to honor the rest of his agreement. goguen says it's the result of a shakedown and resigned on

. >> reporter: sex, lawsuits, and venture capital it's a suit and countersuit urning this man michael goguen. his former mistress amber baptiste says she was his sex slave. she is suing for $40 million. alleging years of abuse. michael's suit says amber was an adult when they met. he describes her as a woman scorned. >> he may have a valid claim of extortion. >> reporter: kpix 5 legal analyst paul says the two suits are the most legally intertwined that he has ever seen. >> it sounds like a contract for taking a bar. this is one of the test questions you see on the bar. >> reporter: michael claims in his suit he stopped honoring the original payment agreement of which he paid out $10 million when she contacted him. it's a contract according to henderson may be legal. >> you cannot contract for illegal moral behavior. that is why you cannot have prostitution under a contract. >> reporter: andria borba kpix 5. >> michael writes this entire matter is purely personal and has no connection whatsoever to sequoia or my years at work there. my departure allows me to focus on full force to clearing m

michael goguen is accused of failing to follow through on a $40 million settlement. he has paid her 10 million, but he claims their relationship was consensual, and she just wanted hush money after their romance ended badly. his countersuit filed today, claims that her lawsuit is "the latest ploy in her scheme to shake down mr. goguen for tens of millions of dollars for rejecting her, all under the guise of a lawsuit designed to incite a media firestorm" area the man, and his firm, parted ways in the wake of an allegation >>> popular messaging app is taking on the feds in the battle over encryption. maria medina on the fight to protect your privacy. >>reporter:what's up the w orld's largest messaging service, vista gives one access to. >> the public, in general, wants that data to stay private, and protected. >>reporter:now they -- whatapp is looking -- essentially making it difficult for anyone to hack into. >> it would be very difficult to break that coating. it's not impossible, but it is another extensive layer >>reporter:whatapp is joining facebook, google, and

goguen is countersuing baptiste for extortion. he left his position at city coy yeah and vows to clear his name. michaels purely personal and has no connection to sequoia or my years of work at sequoia. i with work on clearing my name and vigorously pursuing justice. >>> a cal under investigation. the school fired yan for harassing a sports reporter. the head coach had this reaction. >> i'm disappointed because again i'm the captain of the ship. and i have to make sure everything flows right, goes right. this is where it starts and ends. >> this is at least the fourth high profile sexual harassment case at cal over the last year. the coach is the first one to get fired. >>> bay area highways are still feeling the burn of weekend storms. in napa county heavy rains caused highway 121 to sink by three feet. the stretch from route 128 to wooden valley remains closed as crews come up with a fix. no word on how long repairs will take. check this out. this baby's r us is shut down after a massive chunk of the roof caved in. it happened during business hours but no one was hurt. no word on when the store will r

goguen is countersuing for extortion. he left his position at sequoia last week and vows to fight to clear his name. michaelis purely personal and has no connection whatsoever to sequoia or my years at work at sequoia. my departure allows me to focus on pursuing justice. >>> another scandal at uc berkeley is under investigation. this time it cost an assistant basketball coach his job. the school fired yuan for harassing a sports reporter. he was an assistant with the mens team. the head coach had this reaction. >> i'm disappointed. because i'm the captain of the ship. >> however the coach is the first to get fired. >>> it is 6:40. it's a flash back to four years ago. mitt romney on the campaign trail. coming up what he is doing as the next presidential primaries approach. >> let's check the market on this tuesday. see how wall street is going. down nearly 100 points already. we'll check in with jason brooks after this short time out. ,,,, it took joel silverman years to become a master dog trainer. but only a few commands to master depositing checks at chase atms. technology designed for you. so you can eas