California pension fund sues Wal-Mart execs over alleged Mexico bribery | WTVR/CNN (Michael Martinez)

(CNN) – The California State Teachers’ Retirement System has filed a derivative action lawsuit against current and former Wal-Mart executives and board members for the firm’s alleged bribery in Mexico and a subsequent corporate coverup, the system said Friday.

A derivative action is a lawsuit brought by shareholders on behalf of a company against a third party, and the California entity, which is the second-largest U.S. public pension fund, holds more than 5.3 million shares of Wal-Mart, valued at more than $313.5 million as of Tuesday, according to the fund and its lawsuit.

via California pension fund sues Wal-Mart execs over alleged Mexico bribery | WTVR.com – Richmond News & Weather from WTVR Television CBS 6.

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Predictive Coding Gets A Chance | Dechert LLP – JDSupra

In the high-tech morass that is ediscovery, parties have tried various ways to do something about the disparity between cost and benefit.  An approach is to attempt to use new technology to fix – or at least ameliorate – the problems caused by the explosion in electronic information caused by existing technology.

One such proposed technological fix is called “predictive coding.”  Googling that phrase yields far more technical information than we could possibly provide (or maybe even understand), so in the nutshell of a very small nut, predictive coding takes advantage of artificial intelligence software that enables a computer to learn from its mistakes and adjust its processes accordingly.  The need for attorneys to review produced edocuments is a major aspect of excessive ediscovery cost.

Predictive coding can reduce that cost by using computers to extrapolate actual attorney review of a small subset (a “seed set”) of edocuments over the entire proposed production of documents.  The attorneys review the seed set – then the computer does a similar set of documents based upon the attorney coding.  The attorneys review that set and correct errors.  The computer does another set, having incorporated the attorney’s revisions.  That review process is repeated however many times, until everyone is satisfied the error rate (both false positive and false negative) is acceptable.  The vendors claim predictive coding ultimately makes fewer mistakes than review by actual human attorneys.  Take those financially interested claims with however many grains of salt you believe they deserve.

But until recently, no court anywhere had authorized the use of predictive coding in actual ediscovery.  Now that’s changed.  A presentation we heard at the PLAC spring meeting last week (by David Cohen of Reed Smith), mentioned four decisions in three cases where predictive coding had been judicially authorized as an ediscovery tool.

via Predictive Coding Gets A Chance | Dechert LLP – JDSupra.

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Virginia State Court Judge Allows Defendants to Use Predictive Coding : Electronic Discovery Law

Global Aerospace, Inc. v. Landow Aviation, L.P., No. CL 61040 (Vir. Cir. Ct. Apr. 23, 2012)

In this Virginia state court case, the defendants asked to be allowed to use predictive coding for the processing and production of their own ESI.  The Loudon County Circuit Judge granted the request, and “allowed” the defendants to use predictive coding, subject to objections plaintiffs may want to raise once they obtain the resulting production from the defendants.

via Virginia State Court Judge Allows Defendants to Use Predictive Coding : Electronic Discovery Law.

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Weighing the Legal Ramifications of the Wal-Mart Bribery Case – NYTimes.com (Peter Henning)

The United States government puts a premium on corporate cooperation in foreign bribery cases, relying on companies to conduct thorough internal investigations and voluntarily disclose any wrongdoing.

Indications that Wal-Mart Stores may have taken steps to keep an internal investigation from digging deeper into $24 million in questionable payments — and later promoting an executive who may have been implicated in them — may affect how the government decides to proceed against the giant retailer.

Wal-Mart first disclosed in December that it had started “a voluntary internal review of its policies, procedures and internal controls pertaining to its global anticorruption compliance program.” That review was the result of reporting by The New York Times about bribery by Wal-Mart de México to secure permits and approvals to build new stores.

via Weighing the Legal Ramifications of the Wal-Mart Bribery Case – NYTimes.com.

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E-discovery: Identifying relevant ESI without breaking the bank (GREGORY SCHODDE)

“If I had only one hour to save the world, I would spend 55 minutes defining the problem, and only five minutes finding the solution.” ~ Albert Einstein

Einstein made a great point, one that applies strongly to electronically stored information (ESI) discovery. But even before defining an ESI problem, the first step in most models for ESI discovery is some kind of identification effort. For many companies, a comprehensive account of potential ESI is likely to reveal some frightfully expensive outcomes for the day discovery requests arrive from the opponent. The instinctive reaction to a complaint that promises discovery reaching the farthest corners of the company’s computerized infrastructure is a natural “push back” reaction. Surely, if the opponent senses that there is a rich store of information behind the wall, the assault will only be more intense.

This initial reaction may be counterproductive to the current trend in ESI discovery. Courts are increasingly focused on the high cost of perfect ESI production for low marginal benefit. But to weigh the competing interests in a proposed ESI discovery approach, the bench needs to know what the outer limits are if the requesting party was actually awarded access to all of the ESI in the respondent’s possession. If the contours of the ESI problem are not defined early on, the court cannot step in and cabin the ESI effort to a reasonable scope.

via E-discovery: Identifying relevant ESI without breaking the bank.

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At Wal-Mart in Mexico, a Bribe Inquiry Silenced – NYTimes.com (David Barstow)

In September 2005, a senior Wal-Mart lawyer received an alarming e-mail from a former executive at the company’s largest foreign subsidiary, Wal-Mart de Mexico. In the e-mail and follow-up conversations, the former executive described how Wal-Mart de Mexico had orchestrated a campaign of bribery to win market dominance. In its rush to build stores, he said, the company had paid bribes to obtain permits in virtually every corner of the country.

The former executive gave names, dates and bribe amounts. He knew so much, he explained, because for years he had been the lawyer in charge of obtaining construction permits for Wal-Mart de Mexico.

Wal-Mart dispatched investigators to Mexico City, and within days they unearthed evidence of widespread bribery. They found a paper trail of hundreds of suspect payments totaling more than $24 million. They also found documents showing that Wal-Mart de Mexico’s top executives not only knew about the payments, but had taken steps to conceal them from Wal-Mart’s headquarters in Bentonville, Ark. In a confidential report to his superiors, Wal-Mart’s lead investigator, a former F.B.I. special agent, summed up their initial findings this way: “There is reasonable suspicion to believe that Mexican and USA laws have been violated.”

The lead investigator recommended that Wal-Mart expand the investigation.

Instead, an examination by The New York Times found, Wal-Mart’s leaders shut it down.

via At Wal-Mart in Mexico, a Bribe Inquiry Silenced – NYTimes.com.

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Litigation Edge launches Evidence Organizer for paper discovery and trial bundling

Litigation Edge, a Singapore-based electronic discovery practice, launched Evidence Organizer this week.  Evidence Organizer is a unique tool that was designed to help Singapore law firms automate the paper discovery and trial bundling preparation process. It is a database application that is designed  to capture the metadata of the documentary evidence, including category, date, time and document description, and facilitate the re-use of the information to automate the tedious parts of the trial preparation process, including the production of automated list of documents with pages range, chronologically sequenced files, bates numbered documents.  Read More

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Operationalizing e-discovery—two different approaches | Inside Counsel (Sophie Ross)

There are a number of factors driving the operationalizing of e-discovery.

1.  The sheer complexity of e-discovery has created the need to streamline the process. In-house counsel are now seeking to develop a set of policies and procedures that can help them place controls around e-discovery, leading to predictable levels of quality, efficiency and costs. This is especially true in light of the fact that each matter may involve a variety of internal and external stakeholders, from IT and records management to outside counsel and legal technology vendors. By operationalizing the process, legal departments can better coordinate these disparate parties.

2. The complexity of the e-discovery process exposes an organization to a considerable amount of risk. Because e-discovery will remain a routine duty of the legal department for the indefinite future, the chief information officer and IT department are increasingly involved in acquiring the tools and services to create repeatable and defensible processes.

3.  As our culture has shifted from paper to digital communications, there has been an explosion in the amount of electronically stored information. It’s not uncommon for corporations to put data in terms of petabytes, which is equal to 1 million gigabytes. This deluge of data means that without a plan in place, e-discovery can quickly become an unmanageable and expensive process.

4. The economic downturn of the last few years has put corporate expenditures under scrutiny. This includes a company’s litigation budget, which can easily swell as the volume of corporate data and the frequency of e-discovery requests increase. This need to rein in costs, or at least create a means to predict litigation costs, has also led to the operationalization of e-discovery.

via Operationalizing e-discovery—two different approaches.

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eDiscovery Passports and International eDiscovery in US Courts || ESIBytes

Listen to Karl Schieneman, Founder and President of Review Less talk with Magistrate Judge James C. Francis IV from the S.D. of NY, M. James Daley co-founder of Daley & Fey, and Philip Favro, discovery counsel with Symantec about navigating the world of international e-discovery and how this impacts litigation in the United States. It’s nice to take a breather from predictive coding issues which have taken over ESIBytes lately and return to a mainstream topic. This is a good one as privacy statutes in foreign jurisdictions can complicate e-discovery cases in the U.S. We will also talk about Symantec’s new free web service called an e-discovery passport. This provides the ability to download material on foreign privacy issues broken down by specific country. All in all, this is a great panel for this topic and a very interesting show.

PODCAST

via eDiscovery Passports and International eDiscovery in US Courts || ESIBytes.

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