Electronic discovery preparedness vital to small business owners – Business Blog Casting

Electronic discovery is the pre-trial phase of litigation in which each party can request electronic documents as evidence. In the old days, it may have been referred to as a paper trail, but today has been replaced by e-mail, texts and tweets, along with information on websites. Basically anything produced or stored electronically falls into eDiscovery. While you may have been able to deny making a statement years ago, you can’t deny e-mailing anything which can be used against you simply because it has been recorded electronically.

‘The power of e-mail is that it can take the casual and informal thoughts of a corporate leader and archive them as statements with prior knowledge and devious intent once the SEND button is pressed,’ Leland Macon wrote in his blog. Macon is the President of Digital Current, a division of Geneva Roth Ventures. The company has offices in St. Louis and Kansas City and provides digital document storage and eDiscovery services for companies in a wide variety of industries, including legal, medical and insurance. But really, Macon says, any small business would benefit from having eDiscovery plans in place.

Small business owners often disregard preparation for litigation due to cost. More pressing matters, such as utilities, inventory, and human resources take precedence. They see it more as a ‘what if’ cost, one that can be put off till it happens. Unfortunately, lack of preparation not only hinders the owner’s defense during litigation, it also proves to be more expensive.

An unfortunate byproduct of litigation, and a costly one, is that it affects the company’s ability to do business as usual. During preparation, the owner and the employees will be concentrating on supplying information to the attorneys, and not on filling orders, customer service, and other day-to-day aspects of their jobs. The business, in effect, cannot grow during litigation if the company is not adequately prepared.

The best advice, Macon says, is to contact a reputable eDiscovery service. Check references and make phone calls to existing clients. Call attorneys who have worked with the company to make sure it provides accurate data and thorough processes. The best plan is to be prepared for that ‘what if’ situation. ‘While we’re able to help many companies who call us after they’ve been sued,’ Macon said, ‘it’s much better from a cost perspective to do it prior to litigation.’

via Electronic discovery preparedness vital to small business owners – Business Blog Casting.

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The Thin Line Between Electronic Discovery and Hacking | Catalyst E-Discovery Blog

Is it ever appropriate to tap into someone else’s computer network in order to preserve documents for litigation?

An interesting decision from the 3rd U.S. Circuit Court of Appeals addresses this question, deciding whether a plaintiff’s attempt to preserve digital documents during litigation was appropriate under federal discovery rules or unlawful under state and federal computer anti-hacking statutes. In the Dec. 13 opinion, Joseph Oat Holdings, Inc. v. RCM Digesters, Inc., the court introduces the issue this way:

“This appeal involves an overlap between substantive claims under state and federal anti-hacking laws and alleged electronic discovery misconduct.”

The facts are somewhat involved, but I’ll give you the bullet-point version of what happened, as recounted in the court’s opinion:

In February 2005, two wastewater-treatment companies, Biothane Corporation and RCM Digesters Inc., formed a joint venture, RCM Biothane.

In June 2005, the computer networks of Biothane’s parent company, Joseph Oat Holdings Inc., and the joint venture, RCM Biothane, were connected via a virtual private network. Biothane employees in New Jersey administered the VPN and controlled the RCM Biothane server located in Oakland, Calif.

In August 2006, the parties entered into a separation agreement purporting to end the joint venture. Evidence indicated that RCM continued to operate RCM Biothane after that date.

In September 2006, Biothane sued RCM for trademark infringement, unfair competition, breach of contract, and various other counts.

On Oct. 11, 2006, RCM’s attorney sent Biothane a litigation hold letter. On Oct. 20, he sent a second letter reiterating his request that Biothane preserve all electronic data.

Around the same time that Biothane received the litigation hold letter, it began to systematically copy the files from the joint venture’s server, to which it still had access. Internal memos referred to this as the “information copy project” and instructed employees to do this “under the rader.” A Biothane V.P. later testified that he ordered the copying in response to RCM’s litigation-hold letter and believed he had a responsibility to preserve these files.

When it discovered the copying, RCM, claiming the servers had reverted to its control, filed a motion to amend its counterclaim to add counts alleging violations of California, New Jersey and U.S. anti-hacking laws. RCM also filed a motion asking for discovery sanctions against Biothane for its copying of the files.

Ruling on the request for sanctions, a U.S. magistrate judge found that Biothane’s copying of the documents was “willful” but not in “flagrant bad faith.” He concluded that Biothane “accessed defendants’ computer to preserve business documents, not for the purpose of gaining an advantage in this litigation.” Finding that Biothane could have believed it was justified in accessing the documents, the magistrate judge imposed a fairly modest sanction of paying RCM’s costs, but not attorneys’ fees, incurred in discovery directed to finding out what documents were taken from RCM’s computer system.

via The Thin Line Between Electronic Discovery and Hacking | Catalyst E-Discovery Blog.

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Litigation in Mergers and Acquisitions — The Harvard Law School Forum on Corporate Governance and Financial Regulation

Litigation is often triggered by the announcement of a merger or acquisition (M&A) proposal. Using hand-collected data, we document the types of suits triggered by M&A offers, the factors that influence whether offers are targeted by litigation, the impact of M&A lawsuits on offer outcomes (offer completion rates and takeover premium in completed deals), and the factors that influence whether these cases settle for positive monetary damages.

We find that about 12% of M&A offers announced in our sample period, 1999-2000, lead to litigation. Shareholder lawsuits form the vast majority of all lawsuits. We document that (a) federal court lawsuits, though far fewer than state court lawsuits, attract a significantly higher proportion of bidder and target initiated litigation than state courts; (b) bidder and target lawsuits have significantly lower rates of settlements than other types of lawsuits, and deals involving target lawsuits have lower completion rates, but higher takeover premiums if completed. Target managers typically want to either kill the deal as originally proposed or obtain a higher premium, which will lead to both a lower completion rate and a higher average premium in completed deals; and (c) Offer completion rates are the highest for controlling shareholder squeeze-out offers relative to other M&A offer types. This is not surprising given that a controlling shareholder can unilaterally insure that a deal is completed, simply by having a target board of directors propose a merger transaction and then voting its controlling share interest in favor of the transaction.

via Litigation in Mergers and Acquisitions — The Harvard Law School Forum on Corporate Governance and Financial Regulation.

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12 Important E-Discovery Trends for 2011 and Beyond – Data Storage – News & Reviews – eWeek.com

By Chris Preimesberger on 2010-12-23

Until only a few years ago, document discovery for litigation purposes was the domain of lawyers, law clerks, judges and other non-IT folks. Not anymore. Since the advent of search engines for word documents, email, spreadsheets, messaging threads, photos, logs, videos and a score of other file formats, IT has been intimately involved in rounding up evidence for legal cases. As the sheer amount of business information continues to multiply in storage arrays—whether they are on or off-premises—it has become more difficult for legal teams to find all the documents they need to prosecute or defend a case. Thus, the e-discovery field has burgeoned with new ideas and products that: a) find the correct information; b) find it within a reasonable amount of time; and c) cut the often staggering costs of having expensive legal teams sift through files one by one. In this slideshow, eWEEK, with the assistance of ZL Technologies of San Jose, Calif., offers a list of its top e-discovery trends for 2011 and beyond.

via 12 Important E-Discovery Trends for 2011 and Beyond – Data Storage – News & Reviews – eWeek.com.

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Mozilla Proposes New Icons to Clarify Websites’ Privacy Policies

As the FTC eyes consumer privacy issues and investigates an online “Do Not Track” option, it seems as though web browsers are responding in kind, offering their own solutions to better protect Internet users’ data. For its part, IE9 says it will offer “Tracking Protection” via the browser. And now Mozilla has released its contribution: a set of privacy icons meant to inform people about how their data may be used by the websites they visit.

Mozilla lead designer Aza Raskin posted the alpha version of the privacy icons on his blog, along with an explanation of their meaning and a recognition of the challenges to adoption they might face.

via Mozilla Proposes New Icons to Clarify Websites’ Privacy Policies.

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BBC News – Microsoft warns on IE browser bug

Microsoft has issued a warning about a serious vulnerability in all versions of its Internet Explorer (IE) browser.

If exploited by a booby-trapped webpage the bug would allow attackers to take control of an unprotected computer.

Code to exploit the bug has already been published though Microsoft said it had no evidence it was currently being used by hi-tech criminals.

A workaround for the bug has been produced while Microsoft works on a permanent fix.

Code injection

The bug revolves around the way that IE manages a computer’s memory when processing Cascading Style Sheets – a widely used technology that defines the look and feel of pages on a website.

Hi-tech criminals have long known that they can exploit IE’s memory management to inject their own malicious code into the stream of instructions a computer processes as a browser is being used. In this way the criminals can get their own code running and hijack a PC.

Microsoft has produced updates that improves memory management but security researchers discovered that these protection systems are not used when some older parts of Windows are called upon.

In a statement Microsoft said it was “investigating” the bug and working on a permanent fix. In the meantime it recommended those concerned use a protection system known as the Enhanced Mitigation Experience Toolkit.

Installing and applying the toolkit may require Windows XP users to update the version of the operating system they are using. But even if they do that some of the protection it bestows on Windows 7 and Vista users will not be available.

via BBC News – Microsoft warns on IE browser bug.

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IBM’s ‘Racetrack Memory’ Inches Towards Reality – International Business Times

A memory technology, which could enable a handheld device like an MP3 player to store about 3,500 movies or 500,000 songs, is a step closer to commercial viability, researchers at IBM say.

The project, started by IBM six years ago, may result in massive amounts of personal storage that could run on a single battery for weeks at a time and could possibly last for decades.

The technology promises a solid state memory with the cost and storage capacities rivaling that of magnetic disk drives but with much improved performance and reliability.

Within the next ten years, “racetrack” memory, so named because the data “races” around the nanoscale wire “track,” could lead to solid state electronic devices — with no moving parts, and therefore more durable, says IBM.

via IBM’s ‘Racetrack Memory’ Inches Towards Reality – International Business Times.

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QuickOffice Connect for IPad Gets PowerPoint Editing Ability – PCWorld Business Center

The iPad has taken yet another step toward becoming a full-fledged laptop replacement for business users with Quickoffice’s release of a free update for its Quickoffice Connect Mobile Suite for iPad. The 2.0.0 version of the suite adds extensive text formatting and graphical editing abilities for PowerPoint 2003 files as well as viewing and presenting capabilities for PowerPoint 2007 files.

Quickoffice Connect Mobile Suite lets you create, open, and edit Microsoft Office files on your iPad. It features dedicated tools for working with Microsoft Word documents, Excel Spreadsheets, and PowerPoint presentations; it also includes built-in support for multiple online storage services including Dropbox, MobileMe, Google Docs, and Box.net.

via QuickOffice Connect for IPad Gets PowerPoint Editing Ability – PCWorld Business Center.

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Must-haves for your e-discovery toolkit : Electronic Discovery Law

This article appeared in the Puget Sound Business Journal the week of December 10-16.

In 2007, according to a report from the International Data Corporation, the “digital universe” contained 281 billion gigabytes of data.

That’s the paper equivalent of roughly 2.25 million pages per person.

Commentators predict that by 2011, the digital universe will be 10 times the size it was in 2006. If you consider the last time you wrote a handwritten letter, used a pay phone, or consulted a legal casebook, there is no denying that the world has evolved. And with it, litigation.

via Must-haves for your e-discovery toolkit : Electronic Discovery Law.

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E-Discovery / E-Disclosure Predictions for 2011 « e-Disclosure Information Project

Metadata, as we all know, is data about data. Perhaps next year we could have predictions about predictions – an article put up at about the beginning of November guessing what the various pundits will include in their list of predictions for 2012, based on their known interests.

My own, for example, are likely to include one about medium-sized firms taking work away from large ones, one about the e-Disclosure Practice Direction, one about the e-Disclosure implications of some pending legislation, one about US-EU privacy conflicts, a side-swipe at judges who fail in their duty to manage the discovery aspects of the cases, and a poke at the government, some civil servants or a government agency.

via E-Discovery / E-Disclosure Predictions for 2011 « e-Disclosure Information Project.

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