SAN JOSE — The she said-she said sexual harassment flap at Yahoo Inc. could soon get even more contentious.

According to a lawyer for the company, Yahoo is considering a new attack against a former engineer who accused her boss of sexual harassment. At a San Jose court hearing Tuesday, Eric Amdursky of O’Melveny & Myers said Yahoo may file an extortion suit against Nan Shi, based on a demand letter in which Shi’s attorneys said they would publicly air her allegations unless the company settled for $1 million.