I spend a lot of time in the world of securities litigation and SEC enforcement. One of the best bloggers in that corner of the blawgosphere is Kevin LaCroix, the author since 2006 of an excellent blog called The D&O Diary. Today, Kevin wrote about developments in a case brought by the Federal Deposit Insurance Corp. against two former IndyMac executives that all lawyers should take note of, even those who have zero interest in the underlying case. In the course of defending themselves against the FDIC, the IndyMac executives aggressively attacked the FDIC for its failure to preserve certain documents. In court papers seeking sanctions, counsel for the defendants accused the agency of a "stunning display of incompetence" for failing to preserve documents. "The breadth and depth of the government's document-retention failures are staggering, and violations of this magnitude rarely occur," they argued. "It is a stunning display of incompetence from an agency that is supposed to be the expert at seizing and managing banks." On Jan. 30, Central District of California Judge Dale Fischer held a hearing on the defendants' motion seeking sanctions, dismissal of certain counts of the lawsuit and an adverse instruction to the jury based...

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