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American Airlines, Credit Union Beat Appeal Over 401(k) Fund

July 20, 2021, 2:55 PM

American Airlines Inc. and its affiliated credit union defeated an appeal challenging a low-yield fund in the airline’s 401(k) plan, when the Fifth Circuit ruled that the plan participants lacked standing to bring claims against any defendant.

Plan participants Salvadora Ortiz and Thomas Scott can’t sue the airline for offering a credit union fund with returns they say are “abysmally low,” because they didn’t show they would have earned higher returns if the fund wasn’t in the plan, the U.S. Court of Appeals for the Fifth Circuit said Monday. The plan eventually began offering a stable value fund—the plaintiffs’ preferred ...

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