American Airlines' focus on ESG in 401(k) plan is illegal, US judge rules

(Reuters) - A federal judge in Texas on Friday said American Airlines (NASDAQ:AAL ) violated federal law by basing investment decisions for its employee retirement plan on environmental, social, and other non-financial factors.



The ruling by U.S. District Judge Reed O'Connor appeared to be the first of its kind amid growing backlash by conservatives to an uptick in socially-conscious investing.

O'Connor said American had breached its legal duty to make investment decisions based solely on the financial interests of 401(k) plan beneficiaries.

Source: Investing.com