Texas Judge Hears ESG Lost American Airlines 401(k) $15 Million

An American Airlines Inc. pilot and other 401(k) plan investors told a Texas federal judge the company placed its “incestuous” relationship with BlackRock Inc. ahead of its fiduciary duty, resulting in a $15 million worker benefits loss.

American Airlines’ employment benefits committee didn’t separate the company’s corporate business interests, including its ties to BlackRock, which has espoused socially-conscious investing, from its fiduciary duty to employees’ 401(k) plan, the…