Goldman Sachs : seeks to force ex-employee in Fed leak case to arbitrate

Goldman Sachs Group Inc filed a lawsuit on Thursday seeking to force a former managing director to arbitrate his claim for legal fees stemming from probes into his alleged use of confidential Federal Reserve documents.

The lawsuit was filed in New York state Supreme Court in Manhattan against Joseph Jiampietro, an ex-Goldman employee whom the Federal Reserve Board this month brought an enforcement case against.

Goldman’s lawsuit came after Jiampietro in July sued the bank in Delaware Chancery Court seeking to force it to cover at least $350,000 in legal expenses stemming from probes by the Federal Reserve and the Financial Industry Regulatory Authority in 2015.

Adam Ford, a lawyer for Jiampietro, in a statement called Thursday’s lawsuit “a classic example of inappropriate forum shopping” by Goldman Sachs to delay advancing his client’s defense fees.

The Fed brought enforcement proceedings against Jiampietro on Aug. 3, the same day it announced a $36.3 million settlement with Goldman Sachs for the unauthorized use and disclosure of confidential information.

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