New Rules for Suing Retirement Plan Managers (ERISA Litigation Reform).
This law makes it harder for employees to sue those managing their retirement plans (fiduciaries) over improper transactions by introducing stricter requirements for initial lawsuits. Crucially, the process of gathering evidence (discovery) is automatically paused until the court determines if the lawsuit is legally sufficient, potentially delaying resolution for plan participants.
Key points
Plaintiffs suing plan managers must now plausibly allege and prove that the challenged transaction was *not* covered by a legal exemption, increasing the initial burden on the employee.
In lawsuits against retirement plans, the evidence gathering phase is automatically halted while preliminary motions are pending, which can reduce litigation costs for plans but prolongs the time needed to resolve claims.
Introduced
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