A Texas federal district court ruled that American Airlines breached its fiduciary duty of loyalty, but not its fiduciary duty of prudence, in allowing its $26 billion 401(k) plan to be influenced by environmental, social, and governance (\u201cESG\u201d) policies unrelated to the best interests of participants.<\/p>\n
Judge Reed O\u2019Connor found American Airlines fulfilled its duty of prudence and the airlines\u2019 processes were \u201cconsistent with and, in many aspects, exceeded the processes of other fiduciaries.\u201d<\/p>\n
However, O\u2019Connor said American Airlines acted disloyally.<\/p>\n
The damages for the case are yet undetermined, but I expect an appeal.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" A Texas federal district court ruled that American Airlines breached its fiduciary duty of loyalty, but not its fiduciary duty of prudence, in allowing its $26 billion 401(k) plan to be influenced by environmental, social, and governance (\u201cESG\u201d) policies unrelated … Continue reading