News & Analysis as of

Environmental Social & Governance (ESG) Employee Retirement Income Security Act (ERISA) 401k

Seyfarth Shaw LLP

So, How Can Participants Invest Their Retirement Money?

Seyfarth Shaw LLP on

Under the current administration, the Department of Labor has once again changed course on its view of permissible investing strategies for retirement plans, warming to crypto and private equity, and confirming their distrust...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

DOL Plans to Replace ESG Rule for Retirement Plan Fiduciaries

The U.S. Department of Labor (DOL) indicated in court documents that it intends to begin new rulemaking to replace a previous rule that permitted 401(k) plan fiduciaries to consider environmental, social, and governance (ESG)...more

Parker Poe Adams & Bernstein LLP

Labor Department Shifts Positions on ESG Investments and Cryptocurrencies in 401(k) Plans

As anticipated, the Department of Labor (DOL) recently changed its position with respect to certain investment choices that 401(k) plan fiduciaries sometimes consider or make available to plan participants, including...more

Troutman Pepper Locke

ESG Investing in 401(k) Plans – More Rule Changes on the Way

Troutman Pepper Locke on

In our recent client alert, “Texas Federal Court Allows an ERISA Fiduciary Challenge Against Alleged “ESG Investing” Without Any ESG Funds,” we reported that a Texas district court recently upheld Biden-administration...more

Ropes & Gray LLP

Trump DOL Withdraws Biden-Era ESG Rule and Crypto Guidance for ERISA Plans

Ropes & Gray LLP on

On May 28, 2025, the U.S. Department of Labor (“DOL”) began to articulate the Trump administration’s retirement policy priorities with its decisions to (i) end its defense of the Biden-era ESG rule in a long-running lawsuit...more

Troutman Pepper Locke

Texas Federal Court Allows an ERISA Fiduciary Challenge Against Alleged "ESG Investing" Without Any ESG Funds

Troutman Pepper Locke on

On January 10, 2025, in Spence v. American Airlines, a federal district court in Texas ruled that American Airlines (the company) and the committee overseeing its 401(k) plans (the committee) breached their duty of loyalty...more

Paul Hastings LLP

Federal Court Determines American Airlines, Inc., 401(k) Plan Fiduciaries Breached Their ERISA Fiduciary Duty of Loyalty to...

Paul Hastings LLP on

On January 10th, the United States District Court for the Northern District of Texas (the court) ruled that American Airlines, Inc. (American) and the American Airlines Employee Benefits Committee (together, the Defendants)...more

Fenwick & West LLP

Judge Finds American Airlines Breached its Fiduciary Duty of Loyalty by Allowing Investment Manager to Prioritize ESG Goals with...

Fenwick & West LLP on

On January 10, 2025, the U.S. District Court for the Northern District of Texas found that American Airlines and its employee benefit committee (EBC) breached their fiduciary duty of loyalty under the Employee Retirement...more

Proskauer - Employee Benefits & Executive...

401(k) Plan Fiduciaries Breached ERISA’s Duty of Loyalty By Allowing ESG Interests To Influence Management Of The Plan

Last week, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas, issued the first-of-its-kind ruling on the merits pertaining to environmental, social, and corporate governance (“ESG”) investing...more

Ropes & Gray LLP

Practical Takeaways from Spence v. American Airlines, Inc. for ERISA Plan Fiduciaries

Ropes & Gray LLP on

On January 10, 2025, Judge Reed O’Connor of the Northern District of Texas issued a much-anticipated ruling in Spence v. American Airlines, Inc., which marks the first time that a federal judge has written an on-the-merits...more

Mintz

Federal Court Rules ESG-Guided Investing of 401(k) Plan Is a Breach of Fiduciary Duty

Mintz on

Following a bench trial, Judge O'Connor (N.D. Tex.) held that “that Defendants breached their fiduciary duty by failing to loyally act solely in the retirement plan's best financial interests by allowing their corporate...more

Goodwin

Minding the Store: Unanticipated ESG Issues Affecting ERISA Fiduciary Supervision

Goodwin on

A recent summary judgment decision from the U.S. District Court for the Northern District of Texas in an ERISA (Employee Retirement Income Security Act) class action challenging the alleged impact of environmental, social,...more

Mayer Brown

Northern District of Texas Expands Fiduciary Exposure by Permitting ESG Proxy Voting Theory to Go to Trial

Mayer Brown on

Case Name and Number: Spence v. American Airlines, Inc., et al., No. 4:23-cv-00552 - INTRODUCTION - On June 20, 2024, Judge Reed O’Connor in the Northern District of Texas (the “court”) denied a motion for summary...more

Mintz

Texas Court Rules ESG Lawsuit Against Employer's 401(k) Plan Can Proceed

Mintz on

Recently, a Texas federal court denied the defendants' motion to dismiss in a lawsuit featuring allegations that an employer's 401(k) plan, which allegedly relied on ESG principles when making investments, violated ERISA. ...more

Mayer Brown

Decision Alert: Northern District of Texas Expands Fiduciary Liability To Cover Non-ESG Fund Managers’ ESG-Related Conduct

Mayer Brown on

Case Name and Number: Spence v. American Airlines, Inc., et al., No. 4:23-cv-00552 - Introduction - On February 21, 2024, Judge Reed O’Connor in the Northern District of Texas (the “Court”) denied a motion to dismiss an...more

ArentFox Schiff

Airline 401k Decision Illustrates Continued Takeoff of ESG Litigation

ArentFox Schiff on

A Texas federal judge recently permitted an environmental, social, and governance- (ESG) related Employee Retirement Income Security Act (ERISA) case filed by an airline pilot against his employer and its benefits plan to...more

Cadwalader, Wickersham & Taft LLP

American Airlines Moves to Dismiss Suit Challenging Inclusion of ESG Funds in Retirement Plan

In August 2023, American Airlines, Inc. moved to dismiss a class action lawsuit filed against the airline for allegedly jeopardizing employees’ retirement savings by investing in environmental, social and governance (ESG)...more

Jones Day

Congressional Republicans and State Attorneys General Challenge Biden Administration's ESG 401(k) Rule

Jones Day on

Republicans at the state and federal levels are challenging a Biden administration rule (the "Rule") intended to walk back Trump-era regulations restricting the ability of retirement fund managers to consider climate change...more

Keating Muething & Klekamp PLL

Benefits Monthly Minute - March 2023

The March Monthly Minute highlights new proposed deadlines for use of retirement plan forfeitures, unsuccessful efforts to overturn the final ESG rule, and ACA penalty increases for 2024. Sorry Not Sorry: Biden Vetoes...more

BakerHostetler

The Growing Threat to ESG Initiatives

BakerHostetler on

On Jan. 26, 2023, twenty-four states sued the Department of Labor to block a new rule allowing retirement plans to consider environmental, social, and governance concepts (known as ESG) when administering plan assets. The...more

Miller Canfield

ERISA and ESG: Less Confusion?

Miller Canfield on

​​​​​​​Last year the Department of Labor (“DOL”) proposed changes to ERISA regulations that govern the consideration of environmental, social, and governance (“ESG”) factors in retirement plans, as well as fiduciary...more

Parker Poe Adams & Bernstein LLP

DOL Removes Certain Restrictions on ESG Considerations in ERISA Plan Investment Management

In November, the Department of Labor (DOL) issued a final rule (Final Rule) that will remove certain restrictions on environmental, social, and governance (ESG) considerations in plan investments. These restrictions were...more

Littler

DOL Issues Final Rule for ERISA Fiduciaries Considering Socially Conscious Investments

Littler on

Employers offering 401(k) and similar retirement plans should familiarize themselves with a new rule published by the Employee Benefits Security Administration of the U.S. Department of Labor, Prudence and Loyalty in...more

Foley Hoag LLP

DOL Eases Restrictions on Use of ESG Factors in Retirement Plan Investment Decisions

Foley Hoag LLP on

The U.S. Department of Labor (“DOL”) has issued a final rule (the “Final Rule) addressing how ERISA fiduciaries may consider environmental, social and governmental (ESG) factors in making investment decisions for retirement...more

Kilpatrick

DOL Opens ESG Door: What Does It Mean for Plan Fiduciaries?

Kilpatrick on

Department of Labor (“DOL”) Secretary Walsh recently announced final regulations in a blog post titled “Removing Barriers to Considering ESG Factors in Retirement Plan Investments.” While the rules open the door to more...more

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