If regulators are investigating your business, they are already 'taking legal action' against you.

Now regulators can and in many cases often choose to believe that companies act in good faith when they clean up their data profile before handing it to investigators.

Without clear data, regulators can also assume that a company is trying to obscure the truth by throwing everything and the kitchen sink into a data set while internally only using a subset of the data because it knows X part is patently false.