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You shouldn't ever willingly give up information to a plaintiff if it could implicate you. If the information exists, it's going to come out in discovery. Admitting to theft of trade secrets is probably not going to help you, it's not like the cops offering you immunity for turning state's witness.

You talk to a lawyer and do what they say, not what Apple demands of you. No one but a judge can demand anything of you.

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Anyone is free to demand anything. You can even say no to a judge. You wont like that result, though.
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That's overly dramatic.

At this point, the assumption would be that they are a non-party witness.

So, beyond not destroying any potential evidence, you might as well tell them to shove it.

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It is not overly dramatic to suggest getting a letter like this is INCREDIBLY scary.
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Seems kinds dramatic. Legal holds are common in my industry, not really a big deal. Most of my senior colleagues have been deposed or testified. Stressful but shouldn't be scary unless you did something criminal
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It's not scary. I received one of these letters for the DOJ vs Microsoft trial while working at Netscape and it was less scary opening it than the email from my cube mate titled "you won't believe it."

The lawyers told us ahead of time we'd be getting the letters. They told us what we needed to preserve and what we could comfortably trash. There was never any follow-up or specific requests for what I had on my machines. That was that.

The idea that getting a legal request is scary is silly. We were employees getting employee guidance from our employer on what to do at every step of the way. We weren't individuals fending for ourselves, wondering about getting something wrong, being taken in for questioning. We were doing what we always do, work hard and listen to the company lawyers if they have something to say.

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