Plaintiff Drops Fidelity, Financial Engines from American Airlines ESG Lawsuit

Two defendants to a lawsuit that alleged the American Airlines 401(k) plan sacrificed performance for environmental, social and governance factors have been cut by the plaintiff.

Plaintiff Bryan Spence voluntarily halved the number of defendants to the lawsuit that was initially filed against the airline, employee benefits committee, Fidelity Investments and Edelman Financial Engines for allegedly providing employees a 401(k) plan that sacrificed returns in favor of environmental, social and governance factors.   

Defendants Fidelity Investments and Edelman Financial Engines were severed from the lawsuit Spence et al. v. American Airlines et al. in July, the court docket shows. The notices of voluntary dismissal used identical language—save for the company names, Fidelity and Edelman. The court entered   the notices into the record on July 19 and 24, the docket shows.

“Plaintiff Bryan P. Spence voluntarily dismisses Defendant Financial Engines from the above-captioned matter,” the filing says. “Such dismissal shall be without prejudice, with each side to bear its own costs and fees.”

Currently, the court docket shows American Airlines, Inc. and the American Airlines Employee Benefits Committee remain defendants. 

The complaint claims Fort Worth, Texas-based American Airlines’ 401(k) plan committee and administrators violated their fiduciary duties under the Employee Retirement Income Security Act by investing employees’ retirement savings in “investment managers and investment funds that pursue leftist political agendas” through ESG strategies, proxy voting and shareholder activism.

The lawsuit was filed in U.S. District Court for the Northern District of Texas, Fort Worth Division, and the plaintiff is represented by Hacker Stephens LLP and Sharp Law LLP.

Neither Fidelity nor Financial Engines responded to requests for comment on termination as defendants.