A group of 25 states on Thursday filed a federal lawsuit against the Biden administration, arguing a recent rule allowing retirement plan managers to factor environmental and social issues into investment decisions violated the law.
The lawsuit – led by Utah Attorney General Sean Reyes and joined by 24 other states including Louisiana, Texas and Virginia – challenges a Department of Labor (DOL) rule unveiled in November and which is set to go into effect on Jan. 30. The rule would open the door for fiduciaries to factor so-called environment, social and governance (ESG) considerations into Americans’ retirement accounts, an action the states argued could significantly harm the financial interests of customers.
“The Biden administration is promoting its climate change agenda by putting everyday people’s retirement money at risk,” Reyes told FOX Business in a statement. “Americans are already suffering from the current economic downturn.” Read more…
