Sound Document Retention Policies More Important Than Ever

Arthur Andersen’s Conviction for Shredding Overturned, But Only Because Jury Instructions Flawed

The U.S. Supreme Court has overturned Arthur Andersen’s 2002 criminal conviction for obstructing justice by deliberately shredding documents pertaining to Enron.¹ This outcome is a rather hollow victory for Andersen, which was essentially put out of business by the criminal prosecution. Although the Supreme Court’s ruling might make it harder for the criminal authorities to successfully prosecute obstruction of justice cases, businesses should not interpret the case as sanctioning document destruction in the face of litigation. Relevant documents and electronic records should be preserved as soon as litigation or a criminal or regulatory proceeding is foreseeable.