Image: Holley Robinson, EDRM with AI.
Mobile devices have fundamentally reshaped how we communicate, work, and live. With 91 percent of Americans owning a smartphone and spending nearly five hours per day on these devices, mobile devices have become integral to nearly every aspect of our personal and professional lives. From instant messaging and email communications to photos and health tracking, smartphones store an ever-growing range of personal and professional information.
According to the 2024 State of the Industry Report by eDiscovery Today, 40.2 percent of legal professionals report “always” or “usually” encountering mobile data in their cases—up from just 27.1 percent two years ago. As mobile data continues to grow in both volume and significance, its utility in the legal process has become undeniable.
Mobile Data Impact on Landmark Cases
How has mobile data changed the landscape of eDiscovery in the real world? Let’s explore recent landmark cases.
Theranos’ Downfall: Text messages that undermined Elizabeth Holmes’ defense.
Theranos, once hailed as a revolutionary healthcare company, faced accusations that its blood-testing technology was unreliable and inaccurate. Elizabeth Holmes, the founder and former CEO, and Sunny Balwani, the former COO and Holmes’ ex-boyfriend, were accused of deceiving investors, doctors, and patients about the capabilities of their technology. At her federal fraud trial, Holmes sought to defend herself by arguing that she was abused by Balwani, which impaired her ability to think clearly and make rational decisions at the time of the alleged crimes. Despite her claims of abuse, the texts revealed a close, affectionate, and mutually supportive relationship between the two, weakening Holmes’ claims of manipulation and control.
The Collapse of FTX: Signal messages that exposed an $8 billion scam.
In November 2022, FTX, one of the world’s largest cryptocurrency exchanges, imploded after a severe liquidity crisis revealed an $8 billion shortfall. US prosecutors accused FTX founder and CEO Sam Bankman-Fried of misappropriating customer funds to cover losses at his hedge fund, Alameda Research. Encrypted Signal messages played a pivotal role in the prosecution’s case, revealing internal panic, coverups, and deception among Bankman-Fried and FTX executives. These messages, along with testimony from former executives, established a clear timeline of Bankman-Fried’s involvement in defrauding customers and investors.
Encrypted Signal messages played a pivotal role in the prosecution’s case, revealing internal panic, coverups, and deception among Bankman-Fried and FTX executives.
Ashley Hernandez, Cellebrite Enterprise Solutions, discussing the FTX Collapse.
Analyzing Key Case Law Insights
What recent rulings underscore the complexities of mobile data discovery? From spoliation risks to forensic examinations and proportionality challenges, these key cases illustrate how courts interpret the preservation, collection, review, and production of mobile data. By analyzing case law involving mobile data, legal teams are offered valuable insights on defensibility, privacy, and evolving standards in modern legal matters.
Failure to Preserve Text Messages Results in 37(e)(1) Sanctions
Maziar v. City of Atlanta, Ga., Civil Action 1:21-cv-02172-SDG (N.D. Ga. Jun. 10, 2024)
Michelle Maziar, who worked as the Director of the Atlanta Mayor’s Office of Immigration Affairs, sued the City of Atlanta, alleging she was terminated in retaliation for raising workplace concerns during a meeting. During discovery, Maziar argued that the City failed to preserve key text messages from her supervisor on both work and personal devices. The City’s delayed response in issuing a legal hold led to the loss of key text messages—an outcome that could have been avoided with timely action. Implementing legal holds as soon as litigation is anticipated, along with periodic reminders to custodians, is essential to ensuring relevant data remains available.
Litigant’s Discovery Behavior Leads to Mobile Forensic Examination Order
Measured Wealth Private Client Grp., LLC v. Foster, No. 20-cv-80148 (S.D. Fla. Mar. 31, 2021)
Lee Ann Foster and Richard Kesner were employees of Measured Wealth Private Client Group LLC from 2014 to 2019. Measured Wealth sued Foster, Kesner, and their new employer, Stoever, Glass & Co., Inc., arguing the former employees stole client information and other trade secrets. During discovery, Measured Wealth filed a motion to compel, seeking a forensic examination to obtain text messages and iMessages from Ms. Foster’s iPhone for a one-year period. Ms. Foster objected, arguing the requested discovery was overly broad and that requesting data for an entire year was a litigation fishing expedition potentially revealing personal and private information unrelated to the issues in the case. The judge granted Measured Wealth’s request for a forensic examination. Courts typically prefer less intrusive means of obtaining data, but in cases where a party obstructs discovery or fails to produce relevant information, forensic examination often becomes necessary.
Courts typically prefer less intrusive means of obtaining data, but in cases where a party obstructs discovery or fails to produce relevant information, forensic examination often becomes necessary.
Ashley Hernandez, Cellebrite Enterprise Solutions, discussing Measured Wealth Private Client Grp., LLC v. Foster, No. 20-cv-80148 (S.D. Fla. Mar. 31, 2021).
Dining at Denny’s Brings Adventures in Proportionality
Hinostroza v. Denny’s, Inc., No. 2:17-2561 (D. Nev. June 29, 2018)
In February 2016, Monica Hinostroza of Massachusetts was dining with friends in a Las Vegas Denny’s before her flight home when she said she noticed an error on her check and began walking to the cashier to resolve the matter. Ms. Hinostroza alleged that, as she and her friends walked to the cashier, she slipped on a liquid substance on the floor. Ms. Hinostroza sued Denny’s and others in Nevada state court, alleging that because of Denny’s negligence, she sustained an S4-S5 fracture, sacral and low back pain, anxiety, stress, and depression. Denny’s made discovery requests for various types of data, including medical records, text messages, and social media evidence. The court granted Denny’s request for social media discovery, limited the scope—both in terms of date range and in method of collection, review, and production. Hinostroza underscores that broad, indiscriminate demands for digital evidence are unlikely to succeed. Courts will balance the relevance of the data against the burden of production, ensuring discovery remains fair and proportional.
Hinostroza underscores that broad, indiscriminate demands for digital evidence are unlikely to succeed. Courts will balance the relevance of the data against the burden of production, ensuring discovery remains fair and proportional.
Ashley Hernandez, Cellebrite Enterprise Solutions, discussing Hinostroza v. Denny’s, Inc., No. 2:17-2561 (D. Nev. June 29, 2018).
Tackling the Mobile Data Deluge
Legal and eDiscovery teams are encountering mobile data more frequently as an increasing number of cases involve evidence from smartphones. Managing mobile data in eDiscovery can present challenges at every stage, from preservation to production. Without the right tools, legal and eDiscovery teams face compliance risks, inefficiencies, and defensibility concerns. To mitigate these issues, teams must prioritize solutions that support end-to-end workflows while ensuring defensibility.
Cellebrite and Relativity have partnered to provide an integrated solution that addresses key challenges in mobile data collection and review today. Together, these technologies offer a seamless, end-to-end workflow that ensures greater efficiency, accuracy, and defensibility at every stage of the EDRM. To gain deeper insights into landmark cases and recent case law, download the “From Pocket to Courtroom: The Legal Significance of Mobile Data” whitepaper. Explore the exclusive partnership and see how you can accelerate your time to resolution here.
