American Airlines broke the law by focusing on ESG in 401(k) plans: judge

Legal Ruling on ESG Investment Practices - A federal judge ruled that American Airlines violated federal law by basing investment decisions for its employee retirement plan on environmental, social, and other non-financial factors [1] - The judge stated that American breached its legal duty to make investment decisions solely based on the financial interests of 401(k) plan beneficiaries by allowing BlackRock to focus on ESG factors [2] - The ruling is the first of its kind amid growing conservative backlash against socially-conscious investing [1][3] Case Details and Parties Involved - The ruling followed a four-day non-jury trial in June, part of a class action lawsuit filed by American pilot Bryan Spence on behalf of over 100,000 retirement plan participants [4] - BlackRock, American's asset manager and a major shareholder, was not involved in the lawsuit [4] Judicial Commentary - The judge criticized American's "incestuous relationship" with BlackRock, stating that the company's corporate goals disloyally influenced the administration of the retirement plan [3]