A federal judge has sanctioned 13 plaintiffs suing two collapsed hedge funds for negligence and gross negligence for their failure to preserve electronic files in discovery. Saying "most plaintiffs conducted discovery in an ignorant and indifferent fashion," New York Judge Shira A. Scheindlin will assess monetary sanctions against all 13 plaintiffs and give an adverse jury instruction for the six worst offenders. Scheindlin has written extensively on e-discovery, especially in Zubulake v. UBS Warburg.
Plaintiffs Sanctioned for Failure to Produce Electronic Files in Hedge Fund Suit
New York Law Journal
January 19, 2010