Summary

Adds three new rules to ERISA's civil-enforcement section that make it harder for plaintiffs to win certain fiduciary-duty cases and pause most discovery while early dismissal or similar threshold motions are pending. One rule requires plaintiffs to plausibly allege and then prove that certain challenged transactions are not covered by existing statutory exemptions; another applies the same test to transactions involving employer stock. A third creates an automatic stay of discovery and other proceedings while a Rule 12 motion or specified reply is pending, but allows narrowly tailored court-ordered discovery to preserve evidence and requires parties with actual knowledge to preserve relevant materials during the stay.

• Shifts pleading and proof burdens to plaintiffs in certain ERISA fiduciary-duty claims by requiring proof that challenged transactions are not exempt.
• Applies the same heightened plaintiff burden to claims involving purchase or sale of qualified employer securities.
• Automatically stays discovery and other proceedings while early threshold motions (e.g., Rule 12) are pending.
• Courts can order targeted discovery during the stay to preserve evidence or prevent undue prejudice.
• Parties with actual knowledge must preserve relevant documents and data during stays; courts can sanction willful noncompliance.
• Allows federal courts, on proper showing, to stay state-court discovery to protect federal jurisdiction or enforce judgments.
• No appropriations, tax changes, or new agency duties are created by the bill.
• Likely to reduce the number of claims progressing past early dismissal in ERISA litigation and to speed resolution for defendants who obtain stays.