When Kolon Industries Inc. found itself on the wrong side of a $919 million verdict last year, the South Korean-based manufacturer probably started to take inventory on what it might have done differently to have avoided such a fate. While that list could have included any number of entries, somewhere near the top had to be an action item to revamp its information retention policies and litigation hold procedures. Breakdowns in those protocols led to the destruction of nearly 18,000 pages of electronically stored information, or ESI. This, in turn, resulted in a corresponding instruction to the jury in E.I. du Pont de Nemours v. Kolon Industries, 803 F.Supp.2d 469, that Kolon had engaged in wholesale destruction of key evidence. This eventually culminated in a devastating verdict against the manufacturer.
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