In re NTL Securities Litigation
United States District Court for the Southern District of New York
244 F.R.D. 179 (2007)
- Written by Rich Walter, JD
Facts
Gordon Partners (Gordon) and others (plaintiffs) sued NTL, Inc. (defendant) for securities violations. NTL put a litigation hold on all relevant electronically stored information. NTL subsequently declared bankruptcy and split into two new companies. NTL’s successor firm, NTL Europe, Inc. (defendant), took over as defendant in the lawsuit. A new NTL, Inc. (New NTL) was not a party to the ongoing litigation. NTL Europe and New NTL concluded a demerger agreement giving each company a 10-year right to copy any of NTL’s electronically stored information in the other company’s possession. NTL Europe successfully exercised that right several times. Gordon requested NTL’s electronically stored information from both NTL Europe and New NTL. NTL Europe responded that New NTL possessed all of the electronically stored information. New NTL turned over some of what Gordon requested, but the most critical information in New NTL’s possession had been lost or destroyed. NTL Europe disclaimed responsibility for any spoliation that may have occurred while the electronically stored information was in New NTL’s possession. Gordon petitioned the court for a jury instruction on the adverse inference to be drawn from NTL Europe’s response to Gordon’s discovery request, and for sanctions against NTL Europe.
Rule of Law
Issue
Holding and Reasoning (Peck, J.)
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