PLANSPONSOR’s Post

American Airlines’ efforts to prevent a trial—starting Monday—against its offering of environmental, social, and governance-focused investment options in its 401(k) plan were extinguished in federal court this week. Federal District Judge Reed O’Connor in a June 20 opinion denied American Airlines Inc.’s eleventh-hour request for summary judgment in a class action-certified lawsuit, alleging the airline’s 401(k) plan sacrificed investment performance by including investments that utilized ESG factors. In his article for PLANSPONSOR, Noah Zuss writes: "The court denied American Airlines’ motion for summary judgment “in its entirety,” O’Connor wrote. The legal standard to survive summary judgment is a complainant must provide evidence from which a factfinder could conclude that the accused breached their duty of prudence, wrote O’Connor." https://lnkd.in/g9tsidtu #fiduciaryduty #fiduciary #plansponsor #litigation