Consumer Law

American Airlines Ordered to Face a Lawsuit Over ESG Retirement Investing

American Airlines (NASDAQ:AAL) must face a lawsuit claiming it failed to prudently oversee employee retirement funds because it used asset managers that pursued sustainable investment strategies, a federal judge in Fort Worth, Texas ruled.

U.S. District Judge Reed O’Connor said pilot Bryan Spence can move forward with his lawsuit claiming the airline breached its duties to plan participants by choosing investment managers focused on “nonfinancial” issues of environmental, social and governance.

“These specific actions — selecting, including, and retaining ESG oriented investment managers — allow the court to reasonably infer that defendants’ process is flawed because it allowed plan assets to be used to support ESG strategies,” O’Connor wrote.

Read the source article at Investing.com

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