ERISA Litigation Reform Act

The ERISA Litigation Reform Act (HR 6084) changes how lawsuits under the Employee Retirement Income Security Act (ERISA) are handled, directly affecting retirement and health plan beneficiaries who sue plan fiduciaries over alleged violations. It requires plaintiffs to specifically allege and prove that transactions (like purchases of company stock) aren’t exempt under ERISA rules before proceeding. The bill also temporarily halts discovery (gathering evidence) during early court motions to dismiss, mandates document preservation during this pause, and allows courts to impose penalties for failing to preserve relevant evidence. These changes aim to streamline litigation by reducing early-stage discovery costs and frivolous claims.