Tuesday, May 17, 2005

Not exactly something to write home about if you're Philip Purcell

What does it take for some companies to get a message? Morgan Stanley, which just lost $604,000,000 to Ronald Perelman primarily due to shoddy production of primarily computerized documents such as e-mail, should certainly have been on notice that they had a problem in this area. In November 2002, it was fined for violating regulations about retaining e-mails. In July 2004 it lost a $54 million sex discrimination case where one of the major disputes centered around e-mails. Again in July 2004 they had another fine relating to failing to hand over documents. And making July a triple-header, they paid a $2.2 million fine relative to failing to disclose documents in a timely manner.

How could management tolerate this?

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