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Aleynikov v. Goldman Sachs Group, Inc.

United States District Court for the District of New Jersey
2013 WL 5739137 (2013)


Facts

Sergey Aleynikov (plaintiff) was an employee of Goldman, Sachs & Co. (GSCo), a limited liability partnership and subsidiary of the corporation Goldman Sachs Group, Inc. (GS Group) (defendant). Aleynikov was a vice president at GSCo. GS Group’s bylaws required it to indemnify and advance expenses, including attorney’s fees, incurred by a person who was a current or former director or officer of the corporation, or its subsidiary, in defense of any legal proceedings that arose because of that person’s position as a director or officer. After Aleynikov left GSCo, he was charged and convicted in federal court for theft of trade secrets and transportation of stolen property in interstate commerce, relating to his taking a confidential computer code. The conviction was reversed on appeal, and Aleynikov was acquitted on remand. Aleynikov was then indicted in New York state court for theft of the computer code. While the state court case was pending, Aleynikov sued GS Group, seeking indemnification for the legal fees and expenses he incurred in the federal criminal case and advancement of legal fees and expenses in the ongoing state criminal case. Aleynikov moved for summary judgment.

Rule of Law

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Issue

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Holding and Reasoning (McNulty, J.)

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  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

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