The law did not require perfection, and the court found the steps Medtronic took with respect to most of the lost data were reasonable, especially given the “mammoth” data migration task Medtronic faced during a prolonged stay of discovery.
Two qui tam relators who sued Medtronic, Inc. (Medtronic) under the False Claims Act were entitled to curative measures for the loss of a subset of Medtronic records traceable to tardy legal holds, but not for the loss of records due to a Medtronic data migration project, held the federal district court in Washington, D.C. Medtronic unreasonably added some custodians to the legal hold for this case in an untimely manner, leading to loss of data, and at least some of which was neither replaceable nor recoverable. The relators did not show any intent to spoliate, but the loss of some of the spoliated data prejudiced them, thus entitling them to limited curative measures. The court found some fees and costs were appropriate as a sanction, but it declined to interfere with the presentation of issues at trial. The court reasoned instead that (1) the jury could hear about the loss of data and potentially draw a negative inference; and (2) it was important that the court be free to determine the precise scope of the spoliation of evidence to be permitted at trial and to craft related jury instructions on a full evidentiary record. The court accordingly granted the relators’ Fed. R. Civ. P. 37(e) motion for sanctions in part and denied it in...
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