Understanding the Key Stages of the Legal Hold Lifecycle

A legal hold is crucial for preserving important data and documents that may be needed for legal cases, investigations, or regulatory matters. It ensures that relevant evidence is not altered and remains accessible during litigation. According to Mitratech’s Lauren Burnside, the legal hold lifecycle has four key stages.

1. Initiating the Legal Hold
   A legal hold is triggered when anticipating litigation or an investigation, such as receiving a lawsuit notice or being involved in a government inquiry. The organization sends a legal hold notice to relevant employees, instructing them to preserve critical documents and data. Non-compliance can lead to severe penalties, including fines and reputational damage.
2. Issuing a Notice
   The notice must reach all stakeholders who manage or have access to relevant information. This includes employees directly involved in the legal matter, IT personnel responsible for data preservation, legal and compliance teams, and third-party vendors. Effective communication is necessary to ensure that everyone understands their roles in preserving key evidence.
3. Monitoring for Compliance
   Once a legal hold is issued, continuous monitoring is essential. Organizations should track custodian acknowledgments, conduct regular audits, and address non-compliance. Training is needed for employees unfamiliar with the process or part of multiple holds, while communication ensures custodians continue preservation for ongoing legal holds and reinforce compliance. 
4. Releasing the Hold
   The legal hold can be released once the litigation is resolved, the investigation is complete, or circumstances change. Formal release notices are sent to custodians, and normal data management practices are restored. Proper documentation of the release is critical for compliance and legal defense. 

Each key stage in the legal hold lifecycle — from initiating to releasing the legal hold — requires careful management to protect your organization from non-compliance, data loss, and legal penalty risk.