In a very interesting turn of events, a former Goldman Sachs Programmer has sued his former employer for the recovery of legal expended in the defense of criminal charges that had been brought by the U.S. Attorney’s Office in Manhattan for theft of trade secrets and transportation of stolen propert.
Sergey Aleynikov, a 42 year old man from West Orange, New Jersey had been charged with two felony counts of theft of the investment bank’s confidential computer code for its high speed trading system. He had been convicted n the federal charges and had served nearly one year of an eight year prison sentence before the case was overturned by a federal appeals court in February.
On Tuesday, September 25th, Mr. Aleynikov filed a lawsuit in New Jersey Federal Court against Goldman Sachs seeking attorney fees and expenses for his prior criminal case and advancement of legal fees for the current case that had been recently brought against him by the State of New York. As part of the lawsuit, Mr. Aleynikov is seeking $2.38 million in fees and expenses he said he incurred in defending the first criminal case.
In the lawsuit, Kevin Marino, Mr. Aleynikov’s lawyer, said his client is entitled to have his legal fees paid by Goldman because he was an officer of the company at the time of the alleged incident. He was vice president in Goldman’s Global Equities Division when he left the company at the end of June 2009.
For further information, please refer to the Wall Street Journal BlogPosting written by Chad Bray entitled: Ex-Goldman Programmer Seeks Legal Fees from Investment Bank. We find this to be a very interesting case and will continue to follow its progress.