1 - 1,000 emp1,001 - 10,000 emp10,001 - 100,000 emp100,000+ emp

Mean active lawsuits by company size.3Lawsuits in 2013 (of all business sizes).1

Companies with more than $5B in revenue were more likely to havelawsuits filed against them in the past 12 months.1

Most numerous types of litigation pending in the last 12 months.1

Labor/employment

ContractsPersonal InjuryIP / PatentsRegulatory/Investigations25%

36%48%

19%19%

Up From 9% in 2012

Percentage of companies reporting facing lawsuits with more than $20M at issue:1

A. Data sources are rising.1

B. Data volumes are growing.

23%

2011 201229%

201334%

2014 ?

47%

37%41%

Preservation related problems by data type.3(5= very often, 1= very rarely)

1

23

5

4 Email4.05

1

23

5

4Hard

Drives3.93

1

23

5

4 CollaborationTools

3.59

1

23

5

4 BackupTapes3.33

1

23

5

4 PaperDocs3.39

1

23

5

4 CentralServers3.43

1

23

5

4 Databases3.28

1

23

5

4LegacyData

3.68

10%

57%

20% have had to preserve or collect from an employee’s social media accounts.

Litigation Cost Trends in 2014

© 2014, Exterro, Inc. All rights reserved. ID# IG004-07144145 SW Watson Ave., Suite 400 // Beaverton, OR 97005 1.877.EXTERRO // (p) 503.501.5100 // (f) 1.866.408.7310 // EXTERRO.COM

COMPANIES FACE CONSTANT RISK AND INFLUX OF NEW LAWSUITS...

UNSURPRISINGLY, THE LARGER YOU ARE, THE MORE LAWSUITS YOU FACE

REGULATORY/ INVESTIGATIONS ARE A FAST GROWING PORTION OF LITIGATION

COSTS ARE RISING

AS WOULD BE EXPECTED LARGE COMPANIES ARE FACED WITH MUCH HIGHER COSTS

COSTS ARE RISING FOR MANY REASONS:

AND PRESERVATION COSTS CAN BE STAGGERING

1-5 6-20 21-50 51+0

18%

50%

25%

0% 18% 27% 25% 12%

Number of lawsuits

Perc

enta

ge of

com

panie

s

2,5633,404

228 27

...ON TOP OF EXISTING

LITIGATION

100%

50%

0%

Perc

enta

ge

of co

mpa

nies

Also, 52% of companies reported spending more time addressing regulatory investigative requests or regulatory enforcement proceedings last year.

53%2012

71%2013

Across all companies, 71% report spending more than $1M on litigation excluding costs of settlement and judgments. That’s up from 53% in 2012.1

Approximate fixed costs of preservation for a hypothetical large company are $2.5M/yr.3

BUT PRESERVATION CONTINUES TO BE PROBLEMATIC

90% of respondents said internal teams handle preservation through collection in-house.2

AND COMPANIES CONTINUE TO PRESERVE TOO MUCH!

For large companies, fewer than 10% of custodians under legal hold ultimately see their data collected, let alone processed!3

Only 57% of respondents reported being able to quantify how much data they collect, review and produce in a typical matter.3

Over 79% of companies report preservation of ESI to be a burden.3

Larger companies are much more likely to have one or more large lawsuits pending against them (51% to 34%).1

100%

50%

0%Perc

enta

ge of

com

panie

s

47% of companies reported use of cloud computing, 37% of these companies had to preserve and/or collect from data in the cloud.

62% of companies expect a continued upward trend in e-discovery data in the coming years.2

41% of companies indicate having to preserve or collect data from employee mobile devices. By 2015, 90% of companies expect to have a BYOD policy.

20%

90%

79%

CONTACT EXTERRO TO LEARN HOW OUR E-DISCOVERY SOFTWARE SOLUTION CAN HELP YOU CUT COSTS AND GAIN MORE CONTROL

AND VISIBILITY INTO YOUR E-DISCOVERY PROCESS.

WWW.EXTERRO.COM

SOURCES

1 – 1,000Employees

1,001 –10,000Employees

10,001 – 100,000Employees

100,000+Employees

$12,528 $428,927

$13,842,657$38,618,343

$2.5Mper year

Estimated per-company costs of employee time lost to litigation holds, by company size.3

Companies with$5B+ in revenue

Companies with$1B+ in revenue

1. Norton Rose Fulbright – Litigation Trends Survey Report.

2. FTI Consulting – The Emerging E-Discovery Playbook.

3. William J Hubbard, Assistant Professor of Law, University of Chicago Law School – Preservation Costs Survey.

43%

more than 51

60%

more than 20

66% faceat least one

lawsuit with morethan $20M

at issue 43%spend more than

$10M/yr.