"Aleynikov was employed for two years, from May 2007 to June 2009, at Goldman at a salary of $400,000.[1] He left Goldman to join Teza Technologies, a competing trading firm which offered to triple his pay.[5]"
This is probably the most important bit of information, in regards to Goldman Sachs' motivation. I think it is very likely that they simply did not want him working for competitors. They then searched high and low for ways to remove him form the market.
The actions this guy was sued over are likely all things that he had done before.
jeez, those banks pay a pretty penny.