Republican AGs File Appeal in Bid to Overturn DOL ESG Rule

Republican AGs File Appeal in Bid to Overturn DOL ESG Rule

January 19, 2024, Pensions & Investments

Jason Levy’s commentary was included in a Pensions & Investments article covering an appeal by a group of 26 Republican attorneys general in their legal challenge to a Department of Labor rule permitting retirement plan fiduciaries to consider ESG factors when selecting investments.

Jason said he was struck that the brief focused on the tiebreaker provision because it's seldom used by fiduciaries and a minor part of the Labor Department's rule. "We see this appeal as being focused on an aspect of the rule that has very little practical implication," he said.

Jason added that even if the Fifth Circuit takes issue with the tiebreaker provision, he expects the court would then sever the provision from the rest of the rule, thus allowing the bulk of the rule to stay in place.