What are "litigation holds" primarily used for in legal contexts?

Litigation holds are a critical practice in the legal field used primarily to preserve relevant information due to anticipated litigation. When a party reasonably anticipates that they will be involved in legal proceedings, they must take immediate steps to ensure that any relevant documents and data are not altered, deleted, or destroyed. This preservation is essential because failing to do so can result in spoliation of evidence, which can lead to severe legal consequences, including adverse inferences or sanctions in court.

By implementing a litigation hold, organizations or individuals notify their employees about the need to preserve all forms of evidence that may pertain to the upcoming legal matters. This encompasses not only physical documents but also emails, electronic files, and other forms of communication that could be relevant. The proactive measures taken during this phase can significantly impact the outcome of the litigation, as maintaining the integrity of evidence is vital for supporting claims or defenses.

While other options mention securing assets, organizing evidence for trial, or ensuring compliance with regulations, they do not encompass the primary focus of litigation holds, which is the preservation of relevant information due to the anticipation of litigation.