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Latest Cases Impel Corporations to Retain Records

Summary of Cases

  • Early destruction of email stymied HealthSouth Board of Directors in its investigation of financial and Medicare fraud.
  • Good email records fulfill part of a Board of Directors’ fiduciary duty to prevent and detect fraud. (Caremark International case.)
  • Even a well-meaning public institution can be made to look like a villain if it fails to preserve email records in a sexual harassment complaint. (Norwalk Community College case.)
  • Courts are increasingly intolerant when an enterprise is unable to find email records. Courts may punish both the enterprise and its lawyers. (Qualcomm case.)
  • If an enterprise loses email records because it expected employees to retain them on their individual PCs (rather than in a central enterprise facility), the court may force the enterprise to resurrect old, deleted emails by tediously digging through network backup tapes. (Washington Metro Transit case.)

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