Posted on 05/26/2024 9:57:33 PM PDT by george76
Pilot alleges that the airlines’ ESG investment strategy violates pension fiduciary duties..
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 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.
“By pursuing ESG goals, Defendants gave Plan assets to fund managers, such as BlackRock, who allegedly ignored financial returns as the exclusive purpose and lowered the value of Plan participants’ investments,”..
In addition to being disloyal to the employees, the plaintiff, Bryan Spence, argues that American Airlines’ investments were “imprudent because it is well known that ESG funds are associated with poor performance given the detrimental effects of such activism on stock prices.”
“To remedy these alleged ERISA violations, Plaintiff filed this lawsuit individually and on behalf of a proposed class of Plan participants and beneficiaries,” the order says. “ERISA authorized participants in a qualifying plan to bring an action on behalf of other participants to enforce the statute’s fiduciary obligations and remedial provisions, as well as recover all losses to a plan caused by a breach of a fiduciary duty.”
Texas District Judge Reed O’Conner—a George W. Bush appointee—writes in his order that the case is eligible for class action because of the similarities of ERISA violations.
“Even if the damages are diverse, finding in favor of Plaintiff on his ERISA claims would also resolve the ERISA claims of this class,” he writes.
The remedy for damages would be the same for all plaintiffs in the class-action lawsuit, he says.
‘Underperforms Financially’..
According to the complaint, ESG funds are usually more expensive for pension enrollees than non-ESG funds.
They also “underperform financially,” and instead of maximizing “risk-adjusted financial returns” for enrollees, they “engage in shareholder activism to achieve ESG policy agendas.”
Defendants have also selected and included as investment options funds that are managed by investment companies that pursue ESG policy agendas through proxy voting and shareholding activism,” the complaint says. “Many of these funds are not branded or marketed as ESG funds; however, the actions of their investment advisors and managers give rise to the same ERISA violations as those funds that do market themselves as ESG funds.”
The complaint states that Mr. Spence, an American Airlines pilot and Lt. Col. in the U.S. Air Force, “has suffered specific financial damages” as a result of American Airlines’ “unlawful conduct.”
The pension plan itself “has suffered millions of dollars in losses because of the Defendants’ fiduciary breaches and the Plan remains vulnerable to continuing harm.”
The complaint defines ESG as an investment strategy “aimed at influencing societal changes.”
“Generally, three criteria are used to evaluate companies for ESG investing,” the complaint says.
‘Aggressive Climate Goals’..
Among the criteria are environmental commitments to reduce a company’s carbon footprint and a pledge to support Diversity, Equity, and Inclusion (DEI) agendas.
...
Sacrificing Safety for Ideology..
Currently, the airline industry is under scrutiny for what critics say is sacrificing safety and performance for DEI ideology.
...
Elon Musk criticized the airline industry’s emphasis on DEI initiatives in a post on X.
“Do you want to fly in an airplane where they prioritized DEI hiring over your safety? That is actually happening,” he said.
taking it upon themselves to invest in crap with your money
The big funds are really just an extension of the government at this point, because that is exactly what the politicians do with our taxes.
“Therefore, these natural rights cannot be taken from us by our government(s).”
Really? They do it all the time!
My objection is with the assertion...
“Therefore, these natural rights CANNOT be taken from us by our government(s).”
It is pure BS that governments CANNOT take your rights away.(whatever you think those are)
Why people glum on and repeat those “noble sounding” lies is beyond me. I guess it makes them feel good, or maybe they think that just saying them makes it so.
Protecting your rights is a constant struggle that few undertake. The left is much better at advancing their own interests (rights). They have armies of ACTIVISTS constantly raising hell everywhere and infiltrating every single organization and institution.
We on the other hand are a bunch of PASSIVISTS, mostly sitting on our asses. Many can’t even be bothered to vote every couple of years.
Do you believe in GOD? Specifically, do you believe in the Judeo-Christian Creator YHWH (Jehovah)?
I’m an agnostic, but what does that have to do with the price of tea in China?
Has your belief kept government from taking your “rights”.
And what do you consider to be your rights?
>> I’m an agnostic
Then you have no standards upon which we can base a discussion.
‘Bye now.
Spoken like a mindless “believer”.
God gave you a brain - learn how to use it.
I can tell you, he’s not very happy with you wasting his most important gift.
>> I can tell you, he’s not very happy with you wasting his most important gift.
ROFL! You presume to speak for the GOD you claim not to believe in? You’re full of sh!t.
>> God gave you a brain - learn how to use it.
The Word of GOD is chock full of instruction on how to “use it”. But since you are an unbeliever, unschooled in and ignorant of His WORD, you know none of that.
I pray you discover — or are led to — the Will of the Living GOD. But for now, we have nothing in common to continue a discussion. May you have a nice life, and during your time here may GOD’s Spirit lead you to repentance and belief.
“You’re full of sh!t.”
That is so un-christian of you! I hope God forgives you.
It’s not a sin to state a fact.
But that was sooo hurtful!
What happened to “love thy neighbor”?
I love you too much to kiss your butt and thereby leave you in your lost and delusional state. Snap out of it.
Well that’s better, still to atone for that hurtful, uncalled for, un-christian insult a little peck might be in order.
Could be helpful for your after life.
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