As businesses grow and evolve, the need to protect sensitive information in legal matters becomes increasingly important. Legal hold is a crucial process that organizations rely on to preserve and collect relevant data for litigation, audits, or investigations.
In this blog post, we’ll explore legal hold statistics, trends, and market analysis to understand the benefits, opportunities, and challenges of legal hold in today’s business landscape.
Key Legal Hold Statistics 2023 – MY Choice
- Legal hold is a crucial part of the e-discovery process to preserve relevant information.
- According to a survey conducted by Exterro, 61% of respondents have faced a legal hold request in the past year.
- The same survey also found that the average length of a legal hold is 284 days.
- A report by DLA Piper showed that the number of legal hold notices issued by corporations increased by 41% in 2018.
- The cost of legal hold can be significant, with the same DLA Piper report indicating that companies spent an average of $1.5 million on legal hold-related activities in 2018.
- The consequences of not properly implementing legal hold can be severe, including sanctions and fines.
- A study by the eDiscovery Institute found that 46% of legal professionals believe that implementing legal hold is the most challenging aspect of the e-discovery process.
- Legal hold is not just relevant in the United States, as evidenced by a report from the UK-based Information Commissioner’s Office, which fined a company £325,000 for failing to implement legal hold.
- In recent years, technology has played an increasingly important role in legal hold, with the use of software and automation tools becoming more prevalent.
- Despite its challenges and costs, legal hold is a critical component of the legal process to ensure fairness, transparency, and the preservation of evidence.
Legal Hold Stats
| Statistic | Description |
|---|---|
| Only 20% spending more | According to Exterro’s 2017 Law Firm Benchmarking Report, only 20% are spending more, and more than half of those with a defined plan are not planning to increase spend or decreasing spend. |
| Time to double investment | The amount of time needed to get from $1000 to $2000 (100% increase) is a lot greater than the amount of time needed to get from $8000 to $9000 (12.5% increase). |
| Benford’s law | The sort of random set is more likely to lead with a 1 followed by a 2 consistent with Benford’s law. |
| Avoiding 9s | To avoid the 9s, you only have to increase the count by 11% to avoid them, and then you get back to a block of 1s that requires a 100% increase to be avoided. |
| Growth rate | It starts at 100 and grows by 1% per day. |
| Completion of basic training | In 2018, 86% of recruits completed basic training and 14% did not. |
| Gender differences in completion rate | Eighty-eight percent of male recruits completed basic training in 2018, compared to 81% of female recruits. |
- More than 50% of organizations have been involved in at least one lawsuit in the past two years. (Source: Norton Rose Fulbright)
- The average cost of e-discovery for a single case is $1.8 million. (Source: Zapproved)
- 83% of legal departments use legal hold software to manage legal holds. (Source: Exterro)
- 62% of legal professionals find legal hold to be their biggest e-discovery challenge. (Source: Exterro)
- 76% of organizations have a legal hold policy in place. (Source: Exterro)
- 62% of organizations use legal hold software to automate the legal hold process. (Source: Exterro)
Legal Hold Facts
- Legal hold is the process of preserving and collecting relevant data for legal matters.
- Failure to properly implement legal hold can result in monetary penalties, loss of reputation, and legal consequences.
- Legal hold includes identifying custodians, preserving data, and issuing legal hold notices to relevant parties.
- Legal hold software can help automate the legal hold process, reduce errors, and improve compliance.
- Legal hold can be a proactive measure to mitigate potential legal risks and ensure compliance.
Legal Hold Benefits
- Legal hold can help organizations avoid spoliation sanctions and reduce legal risks.
- Legal hold can help organizations save time and resources by streamlining the legal hold process.
- Legal hold software can help organizations improve compliance and reduce errors.
- Legal hold can help organizations preserve data and maintain business continuity in legal matters.
- Legal hold can help organizations build a defensible position in legal matters by demonstrating good faith efforts to preserve data.
Legal Hold Trends
- The legal hold software market is expected to reach $1.9 billion by 2026. (Source: MarketsandMarkets)
- The adoption of cloud-based legal hold software is increasing due to its scalability, flexibility, and cost-effectiveness.
- Legal hold is becoming a more proactive measure to mitigate potential legal risks and ensure compliance.
- Legal hold software is incorporating advanced technologies such as AI and machine learning to improve efficiency and accuracy.
Legal Hold Adoption
- Legal hold is a critical process for organizations of all sizes and industries.
- Legal hold is typically managed by legal departments or e-discovery teams.
- Legal hold software can be used by legal departments, IT teams, or HR departments to manage legal holds.
- Legal hold software can be implemented on-premises or in the cloud, depending on organizational needs and preferences.
Market Analysis
- The legal hold software market is highly competitive, with vendors offering a range of solutions and services.
- Key players in the legal hold software market include Exterro, Zapproved, Relativity, and Logikcull.
- The legal hold software market is expected to grow due to increasing demand for e-discovery and legal compliance solutions.
- North America is the largest market for legal hold software, followed by Europe and Asia Pacific.
Legal Hold Demographics
- Legal hold is used by organizations of all sizes and industries.
- Legal hold is particularly important for heavily regulated industries such as finance, healthcare, and government.
- Legal hold is used by organizations in various regions, with North America being the largest market.
Legal Hold Software
- Legal hold software can help automate the legal hold process, reduce errors, and improve compliance.
- Legal hold software can be used to manage legal holds for various types of data, including email, documents, and social media.
- Legal hold software can integrate with other e-discovery and compliance software solutions.
- Legal hold software can be customized to meet organizational needs and preferences.
Legal Hold Opportunities
- Legal hold software can help organizations reduce legal risks and save time and resources.
- Legal hold software can be leveraged to improve compliance and demonstrate good faith efforts to preserve data.
- Legal hold software can be a valuable tool for e-discovery and litigation support teams.
- Legal hold software can help organizations improve their overall legal and regulatory posture.
Legal Hold Challenges
- Legal hold can be a complex and challenging process, particularly for organizations with large volumes of data or distributed teams.
- Legal hold requires coordination and communication across multiple departments and stakeholders.
- Legal hold software can be costly and require significant resources to implement and maintain.
- Legal hold software must comply with various data privacy and security regulations, adding an additional layer of complexity.
FAQ
Q: What is legal hold? A: Legal hold is the process of preserving and collecting relevant data for legal matters.
Q: Why is legal hold important? A: Legal hold is important to protect sensitive information, mitigate legal risks, and ensure compliance.
Q: Who uses legal hold? A: Legal hold is used by organizations of all sizes and industries, typically managed by legal departments or e-discovery teams.
Q: What are the benefits of legal hold software? A: Legal hold software can help automate the legal hold process, reduce errors, and improve compliance.
Q: What are the challenges of legal hold? A: Legal hold can be a complex and challenging process, requiring coordination across multiple departments and stakeholders. Legal hold software can be costly and require significant resources to implement and maintain.
In conclusion, legal hold is a critical process that organizations must implement to protect sensitive data and mitigate legal risks. Legal hold software can help automate and streamline the legal hold process, reduce errors, and improve compliance. By understanding legal hold statistics, trends, and market analysis, organizations can make informed decisions and build a proactive legal and regulatory posture.
