Jan 10 (Reuters) - A federal judge in Texas on Friday

said American Airlines ( AAL ) violated federal law by basing

investment decisions for its employee retirement plan on

environmental, social, and other non-financial factors.

The ruling by U.S. District Judge Reed O'Connor appeared to

be the first of its kind amid growing backlash by conservatives

to an uptick in socially-conscious investing.

O'Connor said American had breached its legal duty to make

investment decisions based solely on the financial interests of

401(k) plan beneficiaries.

(Reporting by Daniel Wiessner in Albany, New York)