An unnamed woman claimed in an interview with The Huffington Post that Ford Jr, 47, 'grabbed' her during a professional meeting 'several years ago'.
She was not a colleague of his at Morgan Stanley but rather someone he was meeting to discuss the firm's business.
She said that after he grabbed her and she left, he continued to ask her out for drinks in emails and only stopped when she pleaded with him to. The woman said he also apologized for the alleged incident.
Her allegation led Morgan Stanley, the financial firm which Ford Jr. joined in 2011 as a 'managing director' tasked largely with schmoozing clients, to fire him.
Since then, the father-of-two has hit back both at the woman, who he says is lying, and Morgan Stanley and has vowed to sue them both.
'This simply did not happen. I have never forcibly grabbed any woman or man in my life.
'Having drinks and dinner for work is part of my job and all of my outreach to [the woman] making these false allegations was professional and at the direction of my firm for business purposes.
'I support and have tremendous respect for the brave women now speaking out in this important national dialogue.
On the night of their meeting, she said she was left so frightened by how he 'grabbed' her that she asked a security guard in the building they were in for help.
No other details were given of the meeting but another person corroborated her account, telling The Huffington Post that they spoke with her immediately after the incident.
That person said she was 'distraught, shocked, and frightened.'
Ford Jr.'s accuser said he continued to ask her out for drinks after the alleged incident and only stopped when she asked him to. In those emails, she claims he apologized for the alleged grabbing.
However he says all of their contact was innocent, professional and merely part of his very social job.
In 2011, Morgan Stanley hired him as a managing director but placed an emphasis on how his role would involve managing client relationships with directors, senior executives, investors and private clients.
He has already worked at Merrill Lynch for several years after joining them from congress which he had served in since 1997.
Ford Jr. joined congress at the age of 26, taking over his father's seat as the Democratic Representative of Tennessee's 9th District.
He now also works as a panelist on MSNBC's Morning Joe. Mark Halperin, another of the show's regular fixtures, was fired amid accusations of sexual misconduct last month.
A spokesman for Morgan Stanley confirmed his termination, saying it had been based on 'conduct inconsistent with our values and in violation of our policies.'
Figures he would be a MSNBC favorite.