Recession Affecting E-Discovery Providers

Economic belt-cinching has hit some electronic discovery firms, prompting layoffs and rumors of realignments.

Rumors of recent layoffs at i365, a Seagate Technology company, were confirmed by a spokesman who declined to provide details.

"We're not able to disclose any specific numbers about our recent realignment," said John Sun, spokesman for i365, a data retention and recovery company.

Read more at Law.com.

Kazeon Cuts Costs of Entry-Level E-Discovery

As e-discovery becomes a must-have application and more vendors enter the market, e-discovery specialist Kazeon Systems Inc. today introduced several new licensing models and drastically cut the entry price for companies looking to get started using the software to protect themselves during litigation. With a variety of new e-discovery services and applications competing for a piece of the growing market, Kazeon's move may be the first salvo in a new e-discovery price war.

Kazeon has been charging $80,000 for a server license. Under the new pricing models, customers can get started using the company's software for $10,000, says Karthik Kannan, vice president of market and business development for Kazeon. "We don't want e-discovery to be a multimillion-dollar, six-month process," he says.

Read more at Byte and Switch.

Court Affirms Order Requiring a Non-Party to Spend $6 Mil. to Comply with e-Discovery Subpoena

Appellate courts do not often weigh in on e-discovery issues, but when they do, it is a big deal. The United States Court of Appeals for the District of Columbia did so on January 6, 2009, when it issued an opinion on e-discovery and sanctions. In re Fannie Mae Securities Litigation, _ F.3d _, 2009 WL 215282009, U.S. App. LEXIS 9 (D.C. App. Jan. 6, 2009). Typically, I would be glad to have a Circuit Court opinion on e-discovery. Not so here.

Unfortunately, In re: Fannie Mae Securities Litigation sets a troubling precedent in favor of enforcing exorbitant e-discovery costs. In this case, the Office of Federal Housing Enterprise Oversight (”OFHEO”), was required to spend six million dollars, representing nine percent of its total annual budget, just to comply with a subpoena for electronic documents. Although OFHEO clearly had relevant information to the multidistrict litigation against the Federal National Mortgage Assn. (”Fannie Mae”) and the Federal Home Loan Mortgage Corp. (”Freddie Mac”), they were not a party to the litigation. This fact, coupled with the high expense involved in an over-broad e-discovery request, did not seem to concern the court, which is why this decision is troubling.

Read more at e-Discovery Team.

Houston Computer Forensics Expert Reinvents Career as "New Age" PI

A Houston computer forensics expert has changed his career in a surprising way. Gary Huestis is now a licensed private investigator for the state of the Texas.

Huestis, who is well-known in local computer IT circles, represents the new face of an old profession. “My new career path was literally born of the computer and Internet age,” said Huestis. “I am the last person in the world most people think would ever become a private investigator.”

The Private Security Board of the Texas Department of Public Safety recently licensed Huestis as a private investigator. He owns Houston-based EDiscovery Forensics, Inc. Since 1995, Huestis has also owned Houston Computing Services, a computer repair company.

Read the rest of the story here.

Hackers Spread Virus Through Fake CNN E-mails

Leave it to computer hackers to find a way to profit from a war. But hackers are apparently using the Gaza conflict and a fake CNN news site to infiltrate computers and steal passwords.

"Malicious software or malware takes passwords for online banking sites, online shopping carts, e-mail and chat programs and FTP sites and sends them to a computer in the Ukraine," explained Gary Warner, director of research in computer forensics at the University of Alabama at Birmingham.

Read more at examiner.com.

Top 10 Trends for eDiscovery in 2009

The folks at Clearwell Systems, whose platform works to streamline the eDiscovery process, have looked into their crystal ball and have offered a few predictions for the new year. Among them, trends that respond to financial and legal stresses as well as a need for more collaboration. The most compelling of their predictions lay within the realm of compliance and technology.

For the most part, there predictions aren't surprising our outrageous. They take aim at the very crux of what eDiscovery proselytizes -- show your work, collaborate, adapt and take control!

Drum roll please -- Top 10 Trends for eDiscovery in 2009:

1. Government Investigations Increase: If you thought 2008 had a lot of law suits, you ain't seen nothing yet. An increase in economic tensions and the increase in high-profile scandals will most probably lead to a rise in government data requests, compliance audits and investigations from both a state and federal level.

Click here to see the other 9 top trends.