A state-court lawsuit challenging three New York City pension plans’ decision to divest from fossil fuel companies is poised to determine the fate of a broader, Republican-backed legal theory that ESG considerations don’t belong in workplace 401(k)s.
Workers’ rights group Americans for Fair Treatment filed the lawsuit in May, alleging that a 2021 decision by the public-sector pension plans to sell off more than $4 billion in oil and gas securities violated state laws governing fiduciary conduct.
A New York County judge is primed to rule at any moment on a fully briefed motion to dismiss the case.
The decision ...
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