Red States Appeal ESG 401(k) Rule Challenge to Fifth Circuit (1)

A state-led Republican challenge to the US Labor Department’s ESG-friendly retirement investing rule is now before the US Court of Appeals for the Fifth Circuit.

More than two-dozen GOP state attorneys general suing the department for promulgating the environmental, social, and corporate governance 401(k) investing regulation filed a notice of appeal Thursday in the US District Court for the Northern District of Texas.

The lawsuit has emerged as Republicans’ best chance at undoing the DOL rule, since President Joe Biden vetoed a congressional challenge that garnered some Democratic support in March. ESG investing has thrust employer-sponsored retirement plans into the ...