Simpson Thacher Attorneys Author Article on District Court Decision on ESG Elements in 401(k) Plans
01.24.25
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Partners Leah Malone and Erica Rozow, Senior Counsel George Gerstein and Associate Alexis Capati authored an article titled, “Texas District Court Finds ESG Elements of American Airlines’ 401(k) Plans Violate ERISA Fiduciary Duties,” which was published by The Corporate Governance Advisor. The article discussed the U.S. District Court for the Northern District of Texas decision in a class action lawsuit against American Airlines and its employee benefits committee, holding that defendants breached their fiduciary duty of loyalty under ERISA by hiring and retaining a third-party investment manager that exercised shareholder rights on behalf of two 401(k) plans based on ESG factors. The piece further outlined key takeaways from the decision for ERISA plan sponsors and fiduciaries going forward.
To read the full article, please click here.