When litigation or a government investigation looms, a corporation has a duty to identify and preserve data (documents or other electronically stored information) that may be relevant to the matter. This requirement, imposed by the courts as well as government regulators, is known as a “legal hold” or sometimes a “litigation hold.” It stems from the duty to not destroy relevant evidence that may be required for a judicial proceeding.

Increasingly, courts require legal departments and their outside counsel to supervise the preservation process and to...

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