Judge Approves Class-Action Lawsuit Against American Airlines Over ESG Pension Investments

Pilot alleges that the airline’s ESG investment strategy violates pension fiduciary duties.

An American Airlines flight takes off from Ronald Reagan Washington National Airport in Washington, D.C., on July 10, 2023. Alex Wong/Getty Images

A district judge has granted a pilot’s request for a class-action lawsuit against American Airlines for allegedly investing pension funds into environmental, social, and corporate governance (ESG) funds.

The case revolves around the allegation that American Airlines—headquartered in Fort Worth, Texas—violated its fiduciary obligation to the Employee Retirement Income Security Act (ERISA) “by investing millions of dollars of American Airlines employees’ retirement savings with investment managers and investment funds that pursue political agendas” through ESG initiatives.