ESG Investing Foes Cite Chevron’s Downfall in 401(k) Rule Appeal

Red state attorneys general used the US Supreme Court’s new decision overturning the Chevron doctrine to bolster their argument for blocking the Labor Department’s do-good 401(k) investing rule in the Fifth Circuit, just hours after the high court ruled.

The DOL’s interpretation of federal benefits law in its 2022 rule on environmental, social, and corporate governance considerations in retirement accounts is impermissible in light of Loper Bright Enterprises v. Raimondo, the Republican state attorneys general argued in a letter Friday.

The letter filed at the US Court of Appeals for the Fifth Circuit is one of the earliest examples of attorneys leveraging the Supreme Court’s new precedent to attack a significant rule authored by a federal agency. More regulations are expected to become vulnerable to lawsuits without the Chevron doctrine to force courts to give way to reasonable agency interpretations of ambiguous provisions in statutes.

Source: ESG Investing Foes Cite Chevron’s Downfall in 401(k) Rule Appeal