American Airlines Pilot Advances Suit Over 401(k) Plan ESG Ties

American Airlines, Inc. lost its bid to dismiss a proposed class action saying its 401(k) plan is mismanaged because it focuses on overly political investments aimed at pursuing environmental, social, and corporate governance goals.

Pilot Bryan T. Spence can pursue claims that the airline breached its duties under federal benefits law by knowingly offering funds managed by BlackRock Inc. and other investment managers that allegedly pursue ESG policy goals through proxy voting and shareholder activism, Judge Reed O’Connor of the US District Court for the Northern District of Texas said Wednesday.

Spence’s lawsuit, which seeks to represent a proposed ...