On January 10, 2025, after a four-day bench trial, Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas ruled that American Airlines breached certain fiduciary duties under ERISA when investing—or relying on others to invest—their employees’ retirement assets towards environmental, social, and governance (“ESG”) objectives. The Court concluded that ERISA “does not permit a fiduciary to pursue a non-pecuniary interest no matter how noble it might view the aim,” and ESG considerations do not “confer a license” to fiduciaries to ignore pecuniary benefits. At the same time, the Court found that American Airlines fulfilled its duty of prudence because the airline’s processes were “[c]onsistent with and, in many aspects, exceeded the processes of other fiduciaries.” The Court deferred its decision on damages, pending further briefing on potential financial losses and remedies.