Judge Reed O'Connor of the US District Court for the Northern District of Texas has held that American Airlines breached its fiduciary duty of loyalty under the Employee Retirement Income Security Act by having BlackRock manage a portion of its 401(k) plan assets. O'Connor said some BlackRock votes in proxy fights are examples of "ESG activism." ERISA lawyer Josh Lichtenstein said the case "is not about ESG funds at all" and that "this, to me, looks like the same claim could be brought against literally any 401(k) plan in America."

The US Supreme Court has turned away Meta's appeal of a decision that the company must face a class action alleging that the Facebook and Instagram owner exaggerated the potential reach of ads and overcharged advertisers as a result. A panel of the US Court of Appeals for the 9th Circuit ruled that the advertisers could seek to prove that Meta's alleged misrepresentation of ad reach constituted a "common course of conduct."

The Department of Homeland Security has provided an 18-month extension of Temporary Protected Status for about 600,000 people from Venezuela and over 230,000 people from El Salvador currently residing in the US. The move came less than two weeks before the second presidency of Donald Trump, who sought to curtail the TPS program in his first term. Activists are raising concerns as TPS expirations loom for people from countries such as Nepal, Nicaragua and Honduras.

Special counsel Jack Smith on Friday resigned from the Justice Department, a move that was expected before President-elect Donald Trump's second term begins. The department noted Smith's exit in a filing requesting that US District Judge Aileen Cannon not extend an injunction against the release of Smith's report on the federal cases that were brought against Trump.

Scott Bessent, President-elect Donald Trump's nominee for Treasury secretary, is planning to divest from funds and investments to avoid conflicts of interest, according to a disclosure to the Office of Government Ethics. Bessent, who has more than $700 million in assets, will resign from Key Square Group and other positions if confirmed.

BlackRock is reportedly under renewed pressure from the Federal Deposit Insurance Corp. after missing a previous deadline to settle issues related to oversight of the company's stakes in banks, according to sources. The FDIC has set a new deadline of Feb. 10 to resolve the concerns, and failure to progress could lead to an investigation, the sources said. Previously, BlackRock had sought an extension until March 31 or later, but the FDIC rejected that request.

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The Supreme Court has agreed to review a decision by the US Court of Appeals for the 5th Circuit that struck down some Affordable Care Act preventive care requirements. The lower court sided with employers who objected to covering services such as HIV prevention and certain cancer screenings, citing religious and procedural issues. The case is likely to be heard in the spring.

The US Supreme Court rejected an appeal of a ruling by the US Court of Appeals for the 4th Circuit in favor of Maryland's handgun licensing law, which mandates training and a background check, among other requirements. The justices also rejected the National Association of Realtors' appeal of a ruling that allows the Justice Department to reopen an antitrust inquiry into the association's policies. In addition, the high court turned away Utah's petition challenging the Bureau of Land Management's ownership of 18.5 million acres in the state.

US District Judge Kenneth Bell rejected attempts to dismiss an antitrust lawsuit filed against NASCAR over the stock car series' charter system, which provides financial incentives and ensures a spot in the field to 36 cars in its top Cup Series. The lawsuit, brought by 23XI Racing and Front Row Motorsports, alleges that NASCAR holds a monopoly as the sole stock car entity in the US.