A legal hold (also known as a litigation hold) is a notification sent from an organization's legal team to employees instructing them not to delete electronically stored information (ESI) or discard paper documents that may be relevant to a new or imminent legal case. A legal hold is intended to preserve evidence and prevent spoliation, which is the intentional or negligent destruction of evidence that could harm a party's case. A legal hold can be triggered by various events, such as a lawsuit, a regulatory investigation, or a subpoena.
In this scenario, the company's attorneys have requested that the security team initiate a legal hold in response to the lawsuit filed by the customers after the company was compromised. This means that the security team will most likely be required to retain any communications related to the security breach until further notice. This could include emails, instant messages, reports, logs, memos, or any other documents that could be relevant to the lawsuit. The security team should also inform the relevant custodians (the employees who have access to or control over the ESI) of their preservation obligations and monitor their compliance. The security team should also document the legal hold process and its scope, as well as take steps to protect the ESI from alteration, deletion, or loss.