The Case of the Goldman Sachs Trader Gone Wrong: Settlement Edition

| About: Goldman Sachs (GS)

Hey remember when the world was supposed to end over the Goldman boy gone bad who stole GS code to take over the world?


Via Securities Industry News:

A settlement is the most likely outcome of the Goldman Sachs code theft case, according to securities law experts.

That could be the ripple effect of a ruling by a U.S. District Court judge on Monday, who ruled that Goldman Sachs must provide former vice president Sergey Aleynikov with access to personnel records from his time at the company.

A deal is the most efficient and effective result for both the firm and its former employee, said Harvey Pitt, former chairman of the U.S. Securities and Exchange Commission, now chief executive officer of Washington, D.C.-based consulting firm Kalorama Partners LLC.

Aleynikov was arrested July 3 for allegedly copying 32 megabytes of proprietary Goldman Sachs software, saving it on a server in Germany and transferring the code to a home computer. He had started a new job at a technology startup the previous day.

Settlement seems to be Aleynikov’s objective. Aleynikov attorney Sabrina Shroff in court Monday said she wants to use the file to negotiate a possible deal. Goldman Sachs declined to comment.

A deal is the most likely outcome, since it doesn't look like any actual damage was done to Goldman Sachs, according to a second legal expert, and the Monday ruling is a blow to Goldman Sachs.

Aleynikov's attorney won in court to receive a copy of his "permanent file" though what good that might do is entirely lost on me seeing as how I am not fluent in legalese. Perhaps one of my law-inclined readers would care to enlighten me as to why this little detail might be important?

Good news, I guess, in that the world hasn't imploded and the fragile machinery chugs ever onward. Goldman comes out with a little bruise and is still scandalous as ever.

As Skeptical CPA might say... bah!