Melnyk must surrender laptop computer: Judge
NEW YORK–A former Bank of America Corp. stock analyst who is suing drug maker Biovail Corp. for defamation can conduct a forensic search of company founder Eugene Melnyk’s laptop computer for deleted emails, a judge has ruled.
The ruling permits plaintiff Jerry Treppel to search for additional electronic evidence that could be relevant to his case. Treppel sued the Canadian company and Melnyk in 2003, claiming they launched a smear campaign against him after he urged investors to sell the shares.
The defendants deny the allegations.
The lawsuit in United States District Court in Manhattan is one of many legal headaches for Biovail, a specialty pharmaceutical company based in Mississauga.
Biovail agreed last month to pay $10 million (U.S.) to settle a U.S. Securities and Exchange Commission probe into fraudulent accounting allegations. Four current and former officers, including Melnyk, still face charges by the regulator and the Ontario Securities Commission.
Melnyk, Biovail’s biggest shareholder, has been at odds with the company over its financial performance. He plans to propose an alternative slate of nominees for the board of directors at the annual meeting in June.
Treppel, now working at Wheaton Capital Management LLC in New Jersey, contends that Biovail and others did not properly retain all electronic evidence related to his claims and must produce additional electronically stored information.
The defendants "failed to take adequate measures to prevent the destruction of discoverable materials," U.S cash advance loan. Magistrate Judge James Francis said in a written ruling yesterday. "Accordingly, the plaintiff is entitled to a remedy."
Francis said Treppel could undertake, at the defendants’ expense, a "thorough forensic examination of Mr. Melnyk’s laptop in an effort to recover additional relevant emails that were deleted by Mr. Melnyk."
A Biovail representative was not immediately available for comment. Nor was a spokesperson for Melnyk.
Any evidence recovered from Melnyk’s computer can first be reviewed by the defendants, the judge said.
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