The government will have another month to seek an indictment against or reach a settlement with a former Goldman Sachs Group Inc programmer accused of stealing trade secrets.

U.S. Magistrate Judge James Francis has delayed further proceedings by 30 days until October 16 to let the government and the former programmer, Sergey Aleynikov, continue talks, a spokeswoman for prosecutors in the case said.

In a court filing, Assistant U.S. Attorney Joseph Facciponti said talks to resolve the case were held as recently as September 14 and that justice would be served by allowing more time. Talks were previously extended on August 3 and August 17.

It is common for prosecutors to ask to extend a deadline for seeking an indictment, while plea negotiations are taking place. The request does not mean a settlement is forthcoming.

Prosecutors have accused Aleynikov of downloading stolen Goldman proprietary code onto a home computer, a theft that could cost the Wall Street bank millions of dollars.

Aleynikov has told investigators Goldman knew he had worked on the relevant code from home previously without complaint and that he had no intent to steal.

The FBI arrested Aleynikov on July 3 at Newark Liberty International Airport. He was later freed on $750,000 bail following several days of detention.

At a hearing on August 10, Aleynikov's lawyer said she would seek a deferred prosecution agreement for her client. Such agreements let accused persons escape criminal charges so long as they do not break the law for some period of time.

Aleynikov worked at Goldman in New York for two years before joining Chicago-based Teza Technologies LLC in June. Teza suspended him following his arrest.

The case is U.S. v. Aleynikov, U.S. District Court, Southern District of New York (Manhattan), No. 09-mag-01553.

(Reporting by Jonathan Stempel; editing by Andre Grenon)

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