CIO Survey

Data retention is no longer an option

The decision in a recent US court case going against Morgan Stanley cost the investment bank a cool $1.45 billion – all because of mismanaged e-mail archives. Could it happen here?

01 August 2005 sums up the case succinctly: “On 17 May, a Florida jury was told by the presiding judge that investment bank Morgan Stanley had to pay the full $604.3 million claim made against it by billionaire financier, Ronald Perelman, plus $850 million in punitive damages – not because the jury had been convinced by Perelman`s claim that Morgan Stanley has defrauded him ... but because Morgan Stanley failed repeatedly to locate and hand over e-mails deemed vital to Perelman`s case.”

The Wall Street Journal reports that Judge Elizabeth Maass essentially handed an automatic loss to Morgan Stanley  because “[discovery] abuses have continued unabated”.

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