Texas Judge Certifies Class in Pilot’s Anti-ESG Case

A federal district judge in Texas agreed on Wednesday to grant class certification in a lawsuit against American Airlines, in which, pilot Bryan Spence alleges American Airlines 401(k) Plan for Pilots’ commitment to environmental, social and governance objectives caused harm to the participants in the retirement plan.

Judge Reed O’Connor wrote in favor of Spence’s pleadings, “Class certification is natural in this ERISA case. There are more than 100,000 plan participants and beneficiaries allegedly injured by defendants’ unlawful, plan-wide misconduct.”

He also appointed plaintiff Spence’s attorney, Andrew Stephens, as counsel for the class.

O’Connor established the class as applying to:

“All participants and beneficiaries of the American Airlines, Inc. 401(k) plan and/or the American Airlines, Inc. 401(k) Plan for Pilots from June 1, 2017 through the date of judgment, excluding (i) plan participants and beneficiaries who invested solely through the plan’s self-directed brokerage account, and (ii) defendants and any of their directors, officers, or employees with responsibility for the plans investment or administration,” O’Connor wrote.

O’Connor ruled class certification was appropriate because Spence satisfied the requirements of—Federal Rule of Civil Procedure—to grant class certification. The four threshold conditions are numerosity, commonality, typicality and adequacy of representation and O’Connor agreed Spence satisfied each.  

O’Connor allowed the case Spence v. American Airlines, Inc et al. to proceed, denying American Airlines’ motion to dismiss, earlier this year.  

Spence filed the motion for class certification November 2023, shows the court docket. 

The initial lawsuit, Bryan P. Spence v American Airlines et al., was filed in June 2023 in the U.S. District Court for the Northern District of Texas Fort Worth Division.

Spence filed the active amended complaint in August 2023.  

Neither representatives of American Airlines, attorneys with law firm Kelly Hart & Hallman LLP nor attorneys for Spence responded to requests for comment.