This is only a sample...
In addition to current the current PG&E (Pacific Gas & Electric)
record-keeping woes, and the 2010 Pension case (Zubalake revisited), here
is something that I had put together with sample RM cases/sanctions
covering 2004-2009. This is not comprehensive, but I thought this might be
useful to the group when justifying RM programs to management on a legal
risk based basis. I've included types of accusations in notes below...
***1. **$10M. 2004 Banc of America Securities
(BAS)*
***2. **$1.5M 2005 Banc of America Investment
Services (BAISI) and BACAP Distributers, LLC (1M then .5 M)*
***3. ****$2.5M 2006 Merrill Lynch, Pierce….
File No. 3-12236.*
***4. ****$26 M 2007 Banc of America
Securities (BAS)*
***5. ****$33M 2009 BofA re Merrill Bonuses*
***6. ****$150M. 2009 BofA Merrill Lynch Class
Action*
***8. ****$29.3M 2005 Zubalake vs UBS Warburg*
***9. ****$1.4B 2005 Morgan Stanley (was
reversed on other grounds); See also 2007 settlement*
** **
Notes:****
** **
**1. **Key records and information management related allegations in
this sample included:****
**· **misleading regulators and stalling on producing evidence in
an investigation****
**· **saying that some documents were missing when they weren’t****
**· **destroying documents and emails after regulators asked the
company to produce them****
**· **violating broker-dealer and investment advisor record-keeping
requirements for e-communication****
**· **not safeguarding records (case in point: material non-public
information)****
**· **failing at the start of discovery to check thoroughly its
local servers and its archives for relevant documents, compare the various
versions of relevant documents on those databases, produce documents as
they were kept in the ordinary course of business, and/or **to reproduce
thoroughly and accurately all documents and their attachments. ****
**· **not being able to produce backup tapes****
**· **providing incomplete records to shareholders for purposes of
disclosure
**2. **Per the, *The Electronic Evidence and Discovery Handbook: Forms,
Checklists and Guidelines*, Nelson, Sharon D, Olson, Bruce A and Simek,
John W., American Bar Association (ABA), Law Practice Management Section,
2006. P. 94..3.the benefits of an effective RIM program include: A. Greater
assurance to minimize liability and discovery impacts……D. Reduced storage
costs through elimination of unnecessary and duplicate documents ……..****
3. **Randolph Kahn, Esq. in *Information Nation*, cites a 2002 case in
which a large company was forced to go through nearly 20 million emails to
determine if any were relevant to the case. The court had noted that if the
company had followed its own email policy of 45 days (rather than
maintaining the email for 14 months), the issue would be moot. The
additional cost was several million dollars and several months of work. The
same is true for documents and data retained beyond the retention
requirement stipulated in the Corporate Retention Schedule.****
Regards,
Sue
-
Susan Goodman, CRM, ERMs, ECMp
Director, Records Management
Consumer Reports
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