The carrier illegally allowed BlackRock to focus 401(k) plan investments on environmental, social, and corporate governance criteria.
An American 737-800 aircraft in Charlotte (Photo: AirlineGeeks | William Derrickson)
A U.S. district judge for the northern district of Texas has ruled that American Airlines violated federal law by investing its employee 401(k) plans with a focus on social activism rather than the financial benefit of its workers.
According to a Reuters report, Judge Reed O’Connor said Friday that the carrier breached its legal duty to make investment decisions based only on the financial interests of beneficiaries when it allowed its asset manager, BlackRock, to focus on environmental, social, and corporate governance (ESG) criteria.
American pilot Bryan Spence reportedly sued the carrier in 2023 over the ESG investments in a class action involving over 100,000 participants in the retirement plan. O’Connor said Friday that the carrier had breached its duty of loyalty to retirement plan participants, Reuters reported.
It is currently unclear if American will be penalized due to this ruling. According to a report by the Financial Times, O’Connor deferred judgment on whether plan participants suffered any losses.
Receive a daily dose of the airline industry's top stories along with market insights right in your inbox.
Boeing has agreed to settle a wrongful death lawsuit filed by the family of deceased whistleblower John “Mitch” Barnett. The…
Fresh off its emergence from bankruptcy protection and preparing for a reimagining of its brand, Spirit is rolling out a…
Spirit filed notice with the Securities and Exchange Commission on Monday that it will miss the deadline to file its…
