Goldman Sachs’s Fight to Avoid Paying Employees’ Legal Fees
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Sergey Aleynikov, center, a former programmer with Goldman Sachs, leaving court in New York City last year. CreditSam Hodgson for The New York Times
We know that paying for a lawyer can be an expensive proposition. The New York Times reported recently that a Turkish gold trader, Reza Zarrab, has hired a veritable who’s who of white-collar defense firms to defend him against charges of violating United States sanctions laws in dealings with businesses in Iran. Costs could rise to the tens of millions of dollars if the case goes to trial.
When a corporate employee is the target of an investigation, the company often picks up the tab for the lawyers under provisions in its bylaws that require it to pay those costs in advance. But when the employee is seen as causing losses from misconduct, corporations can refuse to pay by effectively playing a game of keep-away, fighting the demand for legal fees as long as it can…
Goldman Sachs’s Fight to Avoid Paying Employees’ Legal Fees
