BDO-ACEDS 10-29-14 Webcast

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WHAT MATTERS MOST TO CORPORATE

COUNSEL IN E-DISCOVERY MANAGEMENT

Presenting the results from BDO’s inaugural

Inside E-Discovery Survey

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ACEDS Membership Benefits

Training, Resources and Networking for the

E-Discovery Community

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“ACEDS provides an excellent, much needed forum… to train, network and stay

current on critical information.”

Kimarie Stratos, General Counsel, Memorial Health Systems, Ft. Lauderdale

http://www.aceds.org/conference/registeration

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Presenters

Stephanie L. Giammarco leads BDO’s Forensic Technology Services

practice with more than 20 years of experience and a background in

accounting, information technology and criminology. Having worked

on some of the largest financial frauds to date, she has led teams

creating databases of millions of records, performed advanced data

analytics and provided testimony pertaining to damages and

electronically stored information.

Ms. Giammarco provides litigation and consulting services to

organizations and their counsel, including data analytics, computer

forensics and e-discovery services related to domestic and

international matters involving product liability, financial statement

fraud, class action lawsuits, internal investigations, securities fraud,

employee and vendor schemes, and breach of contract. She is skilled

in the collection, preservation and analysis of electronic evidence,

as well as the implementation of various e-discovery tools.

She has been deposed as a Rule 30(b)6 e-discovery witness and

testified before the Judicial Arbitration Services on the calculation

of damages in contract disputes. Ms. Giammarco has published and

presented on a range of computer forensics and e-discovery topics,

including before the Securities and Exchange Commission, Security

Industry Authority and National Futures Association.

Steve Buddell is a Senior Manager in the Forensic Technology and E-

Discovery practice of BDO in London. Mr. Buddell draws upon 18

years of experience in the delivery of forensic information

technology (IT) services and solutions to support criminal and civil

investigations in the public and private sectors. He has focused on

engagements requiring solutions to deal with vast volumes of data

and hardcopy material in respect of litigation affecting

multinational organizations.

Mr. Buddell has built, worked with and managed multi-skilled teams

in Europe, Asia and South America to provide forensic technology

and e-discovery solutions to comply with local and international

legal requirements and applicable to the subsequent movement of

data between jurisdictions.

In October 2009, he was awarded the F3 award for Outstanding

Contribution to Forensic Computing in recognition for his activities

in seeking to bring together IT professionals from all areas of the

public and private sectors, in order to share and discuss prevailing

and anticipated tools and techniques used to secure, process,

analyze and produce data for review.

Stephanie L. Giammarco, CPA/CITP, CFE, CEDS

BDO Consulting Partner

[email protected]

Direct: 212-885-7439

Steve Buddell

BDO Senior Manager

[email protected]

Direct: +44 (0) 20 3219 4016

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Survey

Background

The methodology

behind the survey

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About BDO’s Inside E-Discovery Survey

Conducted by BTI

Consulting Group

Surveyed 100 Senior

In-House Counsel

Asked About the

State of E-Discovery

Detailed Report

Available

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Key

Findings

An inside look at the

state of e-discovery

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Key Findings

E-discovery effectiveness leaves room for improvement.

6.5

Corporate counsel give internal and

external resources a grade of

6.5 out of 10 for overall

effectiveness

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Key Findings

9.4%

12.5%

14.1%

15.6%

48.4%

Importance of E-Discovery Management FactorsPercent of Companies Ranking Factor Most Important

Predicting Total Cost of E-Discovery Early

in the Case

Understanding Universe of Potentially Responsive Evidence

Early in the Case

Ability to Utilize Previously Collected and Processed Data

for Other Matters

Reducing E-Discovery Review Fees

Reducing E-Discovery Processing Fees

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3.8%

11.8%

11.8%

15.7%

25.5%

31.4%

Hired Outside Vendor

New Guidelines and Policies

Added In-house Resources

Cloud-based Storage

Adopted Tools and Technologies

Analysis of Current Systems

Key Findings

Changes in Managing E-DiscoveryPercent of Respondents

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Key Findings

10.0%

10.0%

12.5%

15.0%

17.5%

22.5%

New Regulations

Managing Mobile and Social Networking Data

Developing In-house Capabilities

Cloud-based Data Storage

Cost Control

Automating Processes

Note: Chart does not add up to 100%. Responses

smaller than 10% excluded.

Future E-Discovery IssuesPercent of Respondents

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Key Findings

Early Adopter5.4%

Mainstream39.2%

Late Adopter55.4%

Organization’s Willingness to Adopt New Tools and TechnologiesPercent Ranking Company Classification

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$10.7M

$1.2M

$0M

$4M

$8M

$12M

$16M

Litigation E-Discovery

Key Findings

Average Annual Litigation and E-Discovery SpendingMillions of Dollars

= 11%1.2m

10.7m

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Key Findings

Increase43.2%

Stay the Same50.6%

Decrease6.2%

E-Discovery Spending ExpectationsPercent Total of Company Expectation

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Corporate counsel look for quality at the right cost.

Key Findings

23.8%

47.6%

Percent of Respondents Ranking Factor Most Important

Quality

Total Cost

Importance of Factors When Hiring E-Discovery Providers

68.3%58.7%

0%

50%

100%

Quality Cost

Percent of Respondents Ranking Factor First or Second in Importance

68.3%

58.7%

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Key Findings

0

20

40

Time Spent Managing E-Discovery, per Person

Hours per Week

25th Percentile

75th Percentile

HighAverageMedianLow

50.0

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10.9

6.0

2.0

Time Spent Managing E-Discovery, Per Person

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More Than Half of Companies Designate a Single Individual to Be Accountable for E-Discovery

Key Findings

54.3% of companies designate a single individual

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Key Findings

44.3%

32.9% 32.9%27.1%

24.3%

17.1% 17.1%11.4%

100%

31.4%

7.1%14.3%

10.0% 11.4%5.7%

0%

25%

50%

75%

100%OperationsE-Discovery Issues

Geographic Location of Operations and E-Discovery IssuesPercent of Respondents

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Key Findings

Access11.1%Data Privacy and

Security Laws66.7% Communication

Barriers11.1%

Coordination11.1%

Top Challenge for Companies Managing Cross-Border E-DiscoveryPercent Ranking Greatest Challenges

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Global

Considerations

Perspectives on

cross-border e-discovery

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Global Considerations

Perspectives on cross-border e-discovery

The 1995 EU Data Protection Directive

US “Personal Data” differs from EU “Personal Data.”

US “Processing” differs from EU “Processing.”

The European Convention on Human Rights 1950 (EHCR)

Article 8: Right to respect for private and family life.

The Hague Convention

Article 23: Prevents discovery of any information sought in relation to

foreign proceedings.

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Navigating data privacy, secrecy legislation and blocking statues

affecting cross-border investigations.

“Catch 22” - the use of Blocking Statutes:

Swiss Banking Act – Article 47

Swiss Penal Code – Article 271

French Penal Law No. 80-538

Obtaining consent from the custodian.

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Where is the data and what is needed?

Understanding the IT infrastructure.

Securing the data.

E-Discovery “in a box.”

Deployment of mobile e-discovery processing capability.

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One engagement. Many countries. Many languages. Many cultures.

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Looking

Ahead

Changes on the horizon

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Q & A

BDO-ACEDS 10-29-14 Webcast

Education

Transcript of BDO-ACEDS 10-29-14 Webcast