Compliance June 10, 2024

Judge Confirms Trial Date for American Airlines ESG Lawsuit

A Texas federal judge has scheduled a trial date, following the entry by attorneys for each side of pretrial materials, including witnesses that each expects to testify.

 

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The judge assigned to a lawsuit against American Airlines in Texas federal court last week ordered a trial to begin within the month, anticipating it will take five days and be held at U.S. District Court for the Northern District of Texas Federal Courthouse, in Fort Worth.

Judge Reed O’Connor ruled the trial will begin June 24, 2024, noting a jury trial was not demanded.

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The class action complaint was brought by a former pilot in June 2023. The plaintiff alleged the airline’s 401(k) plan sacrificed performance for environmental, social and governance factors.

The lawsuit is Spence et al. v. American Airlines et al.

Each party has submitted witness lists to the court, entered exhibits into evidence and submitted pretrial materials by May 30, 2024, following O’Connor’s scheduling order.

Attorneys for the plaintiff, former American Air Lines pilot Bryan P. Spence, anticipate calling at trial seven probable witnesses, including Spence himself and one expert witness attorney, litigation consultant J.B. Heaton, operator of law firm One Hat Research LLC. Attorneys for American Airlines expect to call four probable witnesses including Spence, two possible witnesses, three expert witnesses and one records custodian.

In May, attorneys for American Airlines submitted a motion to exclude in part expert testimony of Heaton, on which O’Connor has not made a ruling. Spence’s attorneys responded to the motion on June 7.

In 2023, Heaton independently published a book called “ESGBS: The False Narrative of Environmental, Social & Governance Investing,” criticizing ESG investing.

Neither the attorneys for the plaintiff nor the counsel for the defendants responded to requests for comment. Representatives for American Airlines also did not reply to a request for comment.

The plaintiff is represented by Hacker Stephens LLP and Sharp Law LLP; the defendant is represented by partner Russell Cawyer and attorneys with the law offices of Kelly Hart & Hallman LLP and O’Melveny & Myers LLP.

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