American Airlines Must Head to Trial Over ESG 401(k) Funds (1)

American Airlines Group Inc. must face a pilot’s claims that its 401(k) plan is loaded with investments geared toward “leftist political agendas,” using environmental, social, and corporate governance strategies, a judge ruled Thursday.

The class action covering as many as 100,000 participants in the American Airlines 401(k) plan is among the first lawsuits against a private company arguing that a plan sponsor breached its fiduciary duties by pursuing ESG investments at the expense of workers’ financial interests. The case now proceeds to a June 24 trial at the US District Court for the Northern District of Texas.

The trial will ...