Yahoo Finance Conservative Climate Lawsuit Against NYC Funds Is Dismissed
(Bloomberg) -- A New York judge dismissed a lawsuit by a conservative group against city pension funds over their decision to sell billions of dollars in fossil-fuel investments, in a rare bright spot for proponents of environmental and social investing.
Most Read from Bloomberg
Biden Struggles to Contain Mounting Pressure to Drop Out of Race
Kamala Harris Is Having a Surprise Resurgence as Biden’s Campaign Unravels
China Can End Russia’s War in Ukraine With One Phone Call, Finland Says
The group and three public sector employees lack legal standing to bring the lawsuit, New York State Supreme Court Justice Andrea Masley said in an order made public Wednesday. That’s because they are members of a defined-benefit pension plan entitled to a fixed payment every month and therefore wouldn’t be harmed by the divestment decision in any case, the judge ruled.
“Plaintiffs here have not, and will not, suffer any monetary losses based upon defendants’ investment decisions,” the judge wrote in her order. The retired workers’ allegations about the plans’ potential inability to meet their future obligations are speculative, she found. Besides, she noted, the workers conceded that the city’s taxpayers were on the hook to meet pension obligations.
For more than two years, proponents of environmental and social investing have been subject to a barrage of attacks from Republican politicians because of their focus on climate change, workforce diversity and other issues. GOP officials have launched investigations, filed lawsuits and introduced bills to push back on the strategy.
“This court’s decision is a big win for common-sense responsible investing, for New York City’s municipal workers and retirees, and for the future of our city and our planet,” Comptroller Brad Lander said in a statement.
The plaintiffs in the case, including Americans for Fair Treatment, sued three New York City retirement plans last year over their decision to sell about $4 billion in fossil fuel investments, calling it “a misguided and ineffectual gesture to address climate change.” They were represented by Eugene Scalia, who served as labor secretary under Donald Trump.
Akiva Shapiro, a lawyer who works with Scalia at the law firm Gibson, Dunn & Crutcher LLC, said in an email that the court’s decision is being reviewed and evaluated for potential next steps.
The pension funds had asked the court to dismiss the suit last year.
The case is Wayne Wong v. NYCERS, TRS and BERS, New York State Supreme Court, New York County (Manhattan).
(Adds comment from lawyer in seventh paragraph.)
Most Read from Bloomberg Businessweek
Dragons and Sex Are Now a $610 Million Business Sweeping Publishing
The Fried Chicken Sandwich Wars Are More Cutthroat Than Ever Before
For Tesla, a Smaller Drop in Sales Is Something to Celebrate
©2024 Bloomberg L.P.
