KPMG Forensic Technology Services Managing Costs in e-discoverye October 14, 2010 1
Agenda: Strategies to Manage Costs in e-discovery Pre-collection Strategies Filtering Strategies Review and Production Strategies ( KPMG International ), a Swiss entity. All rights reserved. 2
The Rising Risk and Expense of e-discovery for Corporations 2 GB+ (and rising) of discoverable content per legal matter per custodian -$17,000 per custodian per legal matter in total expense Generally 80%+ of collected content is irrelevant to the legal matter In many cases, discovery represents more than half of the overall cost of litigation (EDDix( EDDix) Average of 125 active legal matters (Information Week) ) per corporation Corporate CFOs are beginning to baulk at the actual cost of the e- discovery process and researchers say $140,000 is the - Accountancy Age, March 2006 minimum per suit. ( KPMG International ), a Swiss entity. All rights reserved. 3
e-discovery Services Industry Overview The Electronic Discovery Reference Model (EDRM) provides an industry stry- developed overview of the e-discovery e process Electronic Discovery Reference Model www.edrm.net Processing Preservation Information Management Identification Review Production Presentation Collection Analysis VOLUME REVELANCE ( KPMG International ), a Swiss entity. All rights reserved. 4
Strategies to Manage Costs in e-discovery Pre-collection Strategies Where is the data? e-mail Recycle Bin CDs & DVDs Solid State Storage Removable Disks Voice Mail Tapes Notebooks PCs & Workstations PDAs & Cell Phones ipods/mp3 Players Printer Scanner Fax Machine Copier IP Telephone Mainframes & Storage Servers ( KPMG International ), a Swiss entity. All rights reserved. 5
What Is Information Management? Broader category that relates to the creation of documents/data/content within a corporation Relates to how a company empowers and restricts user access to systems Relates to how a company differentiates between record data and nonrecord data Increasingly becoming an area of interest to corporate general counsel ( KPMG International ), a Swiss entity. All rights reserved. 3
Preservation Review document retention policies Review preservation notice When was it sent? Did they require/receive acknowledgement/ confirmation? Was IT informed? Suspension of active server and custodian data destruction Suspension of backup tape rotation Suspension of workstation upgrades ( KPMG International ), a Swiss entity. All rights reserved. 7
Strategies to Manage Costs in e-discovery Collection Strategies Targeted Collections Investigative Interviews Prior to Collection Custodian Surveys Statistical Sampling Internal IT Collections BEWARE Resources Qualifications Independence ( KPMG International ), a Swiss entity. All rights reserved. 8
Data Preservation: Other Considerations Does company employ any encryption or other protection? What happens to data when employees leave the company? Are there any legal or regulatory preservation holds in place? Have there been any out-of of-cycle or special backups for system upgrades, migrations, etc. for which backup tapes have been preserved? ( KPMG International ), a Swiss entity. All rights reserved. 9
Strategies to Manage Costs in e-discovery Filtering Strategies De-duplicate Exact Files Near De-duplication of e-mail e Chains Date Specific Searching Complex Searches (i.e., using proximity) Matter or Industry-specific specific Keywords Creating Assignments/Batches Effectively ( KPMG International ), a Swiss entity. All rights reserved. 10
Culling Leading Practices Should be sufficiently broad to capture documents relating to the matter, but not so broad as to generate a high level of false positives Run hit count tests to vet terms and perform tuning to limit false positives Run QC checks on words/phrases that return zero hits to mitigate risk of syntax errors and misspellings May suggest sampling of data to assist with generation of search terms ( KPMG International ), a Swiss entity. All rights reserved. 11
Concept-based Approach: How the Concept Map Is Created Construction, Dust, Mess, Noise Problems, Acme, Noise, Business Construction, Project, Dust Acme, Problem, Dusty Mess Linguistic engine extracts nouns and noun phrases from e-mails e and other electronic documents. Nouns and noun phrases (concepts) are weighted by occurrence and frequency. = Construction, Acme, Dust, Dusty Mess, Noise, Problem Documents with similar concepts go find their friends and group into clusters. = --Acme Construction Dust Noise Problem Clusters are mapped based on content similarity. --Acme Construction Dust Noise Problem Clusters enable rapid identification of relevant (and irrelevant) content. ( KPMG International ), a Swiss entity. All rights reserved. 12
Analyzing Conversations How Can You Track This Interaction Easily? FC Bernie forwards to Mike and copies David R R Phil sends e-mail to Bernie, Jenny, Bob, and Matt Bernie C Mike F Mike responds to Bernie and David R Jenny C Jenny responds to Phil and copies Leslie David David replies to Phil and Leslie, forwards e-mail to Others Others Phil C Bob Matt F Bob forwards e- mail to Mike, Arun and David CMatt replies to Phil and copies Bernie, Leslie, Arun, and Others Leslie Outside ( KPMG International ), a Swiss entity. All rights reserved. 13 RC Arun Arun responds to Bob and copies Jenny
Strategies to Manage Cost in e-discovery Review Strategies Linear-based processing Metadata extraction Native file delivery Text extraction Filtering Concept-based processing Clustering via algorithms Visualization tools Group similar or familiar documents Dynamically linked to other views of documents Initial understanding of documents prior to deeper dive ( KPMG International ), a Swiss entity. All rights reserved. 14
Strategies to Manage Cost in e-discovery Productions Native production vs. imaged production Rolling production Privilege review and automatic logging (vs. manual log generation) Redactions, auto-redactions and automatic logging (vs. manual log generation) ( KPMG International ), a Swiss entity. All rights reserved. 15
Produce Production Options Native Production vs. Imaged Production Hybrid Production Rolling Production Database Production Privilege review and automatic logging Redactions, auto-redactions and automatic logging Bookmarking and issue coding Production TIFFs On Demand ( KPMG International ), a Swiss entity. All rights reserved. 16
Strategies to Manage Cost in e-discovery Questions? ( KPMG International ), a Swiss entity. All rights reserved. 17
About the Speaker Jason Velasco is a director with KPMG with more than 14 years of experience in electronic discovery issues and forensic investigations. Mr. Velasco has conducted more than 350 computer forensic examinations for civil litigators and companies and has emerged as a leading computer forensic specialist, providing expert witness services related to electronic evidence topics and data preservation issues. As one of the founders of RenewData,, Mr. Velasco has held many positions within the company throughout out its growth to a tier-one vendor. Mr. Velasco also worked two years for Merrill Corporation oration running their client services and forensic practices. Prior to RenewData,, Mr. Velasco served in various forensic and data recovery positions at Ontrack Data International, Inc. (now Kroll Ontrack). Mr. Velasco also currently serves as an active member of: The Sedona Conference (www.thesedonaconference.com( www.thesedonaconference.com) ) on Working Group 1: Electronic Document Retention and Production on and Working Group 6: International Electronic Information Management,, Discovery, and Disclosure The Electronic Discovery Reference Model (EDRM) Project (www.edrm.net( www.edrm.net) ) as the leader of the EDRM Evergreen Project, a participant on the EDRM PR Committee, and the EDRM Advisory Committee The Association of Records Managers and Administrators (ARMA) (www.arma.org( www.arma.org) In addition, Mr. Velasco has authored a number of published white e papers and articles, as published in Compliance Solutions Advisor magazine. Mr. Velasco has also been a frequent panelist and speaker for technical organizations and companies, Web seminars, and at industry events including the U.S. Law Network Client Conference and the International Quality & Productivity Center C (IQPC) E-Discovery E Conference. Mr. Velasco has also conducted more than 700 CLE courses on topics such as e-discovery, e document retention, preservation archiving, collection methodologies, e-mail e archiving and compliance, effective communication with IT, and the technical aspects of electronic evidence. e Mr. Velasco often consults for FORTUNE 500 companies and law firms by designing procedures and protocols related to the technical and legal aspects of electronic evidence productions. 2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms 2010 KPMG LLP, a Delaware affiliated limited with KPMG liability International, partnership and a Swiss the U.S. entity. member All rights firm reserved. of the KPMG Printed network in the of U.S.A. independent KPMG and member the KPMG firms logo affiliated are registered with KPMG International Cooperative trademarks ( KPMG of KPMG International ), a Cooperative, Swiss entity. a All Swiss rights entity. reserved. 36701HOU 18
Presenter s s contact details Jason Velasco KPMG LLP Cell: 512-658 8277 jasonvelasco@kpmg.com www.us.kpmg.com KPMG and the KPMG logo are registered trademarks of KPMG International tional Cooperative ( KPMG( International ), a Swiss entity. The information contained herein [on Spreadsheet Fraud is of a general g nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, i there can be no guarantee that such information is accurate a as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional sional advice after a thorough examination of the particular situation. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. 2010 KPMG LLP, a U.S. limited liability partnership and a member firm of the KPMG network of independent member firms 2010 KPMG LLP, a Delaware affiliated limited with KPMG liability International, partnership and a Swiss the U.S. entity. member All rights firm reserved. of the KPMG Printed network in the of U.S.A. independent KPMG and member the KPMG firms logo affiliated are registered with KPMG International Cooperative trademarks ( KPMG of KPMG International ), a Cooperative, Swiss entity. a All Swiss rights entity. reserved. 36701HOU 19