American Airlines Lambastes Suit Over ESG Funds in 401(k) Plan

American Airlines Inc. is fighting litigation claiming its 401(k) plan investments pursue “leftist political agendas,” telling a Texas federal judge that the pilot who sued never held any of the funds he criticizes.

None of the 401(k) funds that plaintiff Bryan Spence challenges as improperly favoring environmental, social, and corporate governance strategies can be found in the plan’s core investment lineup, American said in an Aug. 4 motion to dismiss. These funds are available exclusively through the plan’s self-directed brokerage account, which is fatal to Spence’s claim that they were chosen in violation of American’s fiduciary duties under the ...