The Labor Department’s new rule allowing fund managers to allocate assets based on ESG considerations rather than financial returns (prohibited under Trump’s Labor department) took effect this week, but 25 state AGs have sued to block it.
The full text of the lawsuit is available here:
The case was filed in the Northern District of Texas – probably not coincidentally the same jurisdiction where the Obama-era Fiduciary Rule was struck down.
We have noted many times that ESG funds have severely underperformed other investment funds. Biden’s outrageous rules – if allowed to stand – will cost Americans dearly in their smaller retirement nest eggs.