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Government Sanctioned for Failure to Preserve Documents

Client Alert | 1 min read | 10.26.12

In United States ex rel. Baker v. Community Health Sys., Inc, No. 05-279-WJ-ACT (D.N.M. Oct. 3, 2012), the U.S. District Court in New Mexico upheld sanctions against the government for failing to preserve electronically stored information in a False Claims Act case, ordering the government to produce certain privileged materials. This case provides valuable reminders that the government's duty to preserve evidence may arise long before it intervenes and that merely issuing a litigation hold is not in and of itself sufficient to satisfy the duty to preserve, but parties also must take diligent steps to implement and monitor compliance with preservation obligations.

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Client Alert | 6 min read | 06.09.26

Is Stock-a-palooza Over? Supreme Court allows SEC to Pursue Disgorgement

On June 4, 2026, the U.S. Supreme Court unanimously held that the U.S. Securities and Exchange Commission (SEC) can continue to pursue disgorgement as an equitable remedy in securities fraud cases without showing pecuniary loss by investors. The Court’s ruling in Sripetch v. SEC resolves a split between the U.S. Court of Appeals for the Second Circuit, which concluded that the SEC must demonstrate pecuniary loss, and the U.S. Courts of Appeals for the First and Ninth Circuits, which declined to require such a showing....