Corporate Law

Still battling code-theft case, former Goldman Sachs programmer sues bank for legal fees

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A former computer programmer for Goldman Sachs Group Inc. ultimately prevailed in a federal prosecution over claims that he stole source code from his employer.

But Sergey Aleynikov is still battling Goldman to obtain reimbursement for some $3 million he says he has expended in legal defense fees, reports Reuters.

He argues that his position as a vice president made him an officer entitled to indemnification under Delaware law.

Meanwhile, Aleynikov is facing a similar source-code prosecution by Manhattan District Attorney Cyrus Vance in New York state court.

Although his trial in that case is scheduled to begin on April 1, his lawyer, Kevin Marino, is hopeful that the lawsuit filed today in Delaware chancery court will proceed on a fast track and “render Goldman’s promise to advance fees a meaningful one.”

Goldman Sachs is incorporated in Delaware. A company spokesman declined the news agency’s request for comment.

Related coverage: “2nd Circuit Axes Espionage Conviction of Goldman Sachs Programmer Who Took Source Code to New Job” “Goldman Sachs must pay legal bills for programmer it accused in code-theft case, federal judge rules”

Bloomberg: “‘Flash Boys’ Programmer Loses in Goldman Fight Over Fees”

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