e-Discovery Abuse: Judge refers Company and Four of Its Top Officers to U.S. Attorney for Criminal Prosecution

When a defendant was caught intentionally spoliating digital evidence on five laptops, executives tried to cover up the destruction of evidence, and lied on the stand.

Philips Electronics N.A. Corp. v. BC Technical, 2011 WL 677462 at *2 (D.Utah, Feb. 16, 2011).

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This led to severe sanctions. Judgment was entered against the defendant, fees were awarded, and the defendant and four of its top officers were referred to the United States Attorney for possible criminal prosecution.

The Judge wrote: “Willful  spoliation  of  evidence  deserves  the  harshest sanctions  because  it  is  antithetical  to  our  system of  justice.  The  evidence  is  sufficient  to  show  such willfulness  here.  The  court  therefore  concludes
both  attorney’s  fees  and  terminating  sanctions  are appropriate in this case.”
Further more, the Judge went on to write:
“Because  certain  individuals  lied  under  oath, Judge Alba recommends that his matter be referred to the United States Attorney’s Office for investigation.”
“The  Clerk  of  the  Court  is directed to send a copy of this Order, along with the Report  and  Recommendation,  to  the  Acting  United
States  Attorney  for  the  District  of  Utah  for  such action as she deems is appropriate.”