Red States Suing Over ESG 401(k) Rule File Motion for Injunction

The 25 red-state attorneys general suing the US Labor Department over its socially conscious retirement investing rule have formally asked a federal judge to bar regulators from enforcing it while the case proceeds.

Plaintiffs asked US District Court for the Northern District of Texas Judge Matthew J. Kacsmaryk to grant a preliminary injunction because the rule violates federal law and immediately threatens the bottom line of Texas-based energy companies that have also signed onto the suit.

DOL’s new rule took effect late last month and permits private-sector workplace retirement plans to consider environmental, social, and corporate governance factors when selecting ...