Electronic Discovery and the Challenge Posed by the Sarbanes-Oxley Act

UCLA Journal of Law and Technology, Forthcoming

41 Pages Posted: 14 Jun 2006  

Daniel Garrie

Law & Forensics; Benjamin N. Cardozo School of Law

Matthew Armstrong

Rutgers Law School

Abstract

While the Sarbanes-Oxley Act was intended to protect and increase publicly held corporations' accountability, lurking in the background are judicial inequities resulting from mandatory Sarbanes-Oxley technology investment. Sarbanes-Oxley compels public companies to invest millions in new technology while exempting private corporations from these costs. Consequently, in the discovery phase of a private versus public company dispute, the private litigant's discovery costs are likely to be more burdensome than the public corporation's costs. This provides the private litigant with a stronger and more compelling judicial argument to transfer costs to the discovering party under the Zubulake framework. Both attorneys and judges must be mindful of this potential e-discovery loophole.

Keywords: Sarbanes-Oxley, sox, e-discovery, digital discovery, edscovery, e-mail discovery

JEL Classification: K20, K21, K22, K23, K00, K30, P34

Suggested Citation

Garrie, Daniel and Armstrong, Matthew, Electronic Discovery and the Challenge Posed by the Sarbanes-Oxley Act. Available at SSRN: https://ssrn.com/abstract=743204

Daniel B. Garrie (Contact Author)

Law & Forensics ( email )

6506 3rd Ave NW
Suite C
Seattle, WA 98117
United States
855 529 2466 (Phone)

HOME PAGE: http://www.lawandforensics.com

Benjamin N. Cardozo School of Law ( email )

55 Fifth Ave.
New York, NY 10003
United States

Matthew Armstrong

Rutgers Law School ( email )

NJ
United States

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