United States: E-Discovery Alert! Protect Against Court Sanctions
"Background. Under the new federal rules, companies must preserve e-mails and other electronic data when litigation is anticipated. At some point early in litigation, you also may receive a "litigation hold" letter, from an attorney who is representing a former employee. "Litigation hold" letters put you and your company under the responsibility to warn employees to preserve electronic data immediately.
Serious consequences arise when one ignores a litigation hold letter. Federal judges can enter "sanctions," against companies which do not preserve electronic data, or who alter electronic data. Sanctions also can be entered against employees."