FRANCE Law and Practice Contributed by: Sophie Scemla, Didier G Martin, Diane Paillot de Montabert and Calypso Korkikian, Gide Loyrette Nouel
• Legal hold notices – suspend routine docu- ment destruction and preserve all relevant materials immediately. • Centralised data management – use secure repositories for both digital and physical records to ensure traceability and confidenti- ality. • Forensic investigations – engage internal or external forensic teams to collect and analyse digital evidence while maintaining chain of custody. • Whistle-blower and reporting mechanisms – implement dedicated channels to gather information from employees and third parties. To ensure compliance with legal requirements for evidence preservation, companies: • adhere to sector-specific regulatory standards (eg, financial, environmental, and data protec- tion laws); • implement data protection measures in line with GDPR or equivalent regulations; • maintain audit trails and document integrity to prevent tampering or unauthorised access; and • provide training to employees on proper recordkeeping and reporting. 5.7 Settlements Companies facing litigation deriving from a crisis often seek consensual resolution mechanisms to reduce financial, legal, and reputational risks. Settlement options include the following. • Judicial and extrajudicial settlements – agree- ments between parties to resolve disputes outside of court. • Mediation and arbitration – alternative dispute resolution mechanisms for mutually beneficial outcomes.
• Deferred Prosecution Agreements (DPAs) – available in some jurisdictions and before certain authorities (such as the “composi- tion administrative” before the AMF, settle- ment with the competition or tax authorities) allowing companies to avoid prosecution in exchange for compliance commitments. In France, the Convention Judiciaire d’Intérêt Public (CJIP) offers a settlement mechanism for corporate criminal matters, such as corruption, money laundering, environmental violations, and tax fraud. A CJIP allows companies to avoid criminal conviction by: • paying a negotiated financial penalty; • strengthening their compliance programme, often with a monitoring by the AFA; and • compensating victims, if applicable. Before entering into a settlement, companies assess factors such as reputational impact, reg- ulatory compliance, and long-term legal risks. A well-negotiated settlement can limit exposure, demonstrate proactive compliance, and support business continuity while aligning with corporate governance and RSE commitments. 5.8 Insurance Companies rely on specialised insurance poli- cies to mitigate financial exposure from crises and litigation. Common policies include Direc- tors & Officers (D&O) Liability Insurance, which covers legal costs and liabilities from regulatory and authorities investigations, and Professional Indemnity Insurance to protect against claims related to professional errors or negligence. Cyber Liability Insurance covers losses from data breaches and cyber-attacks, while General Liability and Business Interruption Insurance addresses operational disruptions and third- party claims. Environmental Liability Insurance
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