Eleven states, led by Texas, have filed an antitrust lawsuit against BlackRock, Vanguard and State Street, alleging the firms conspired to manipulate coal production and drive up energy costs. The complaint claims these actions violated federal and state laws and harmed American consumers.
Filed in Texas federal court, the lawsuit accuses the firms of using their ownership stakes in coal producers to suppress coal output. The companies allegedly promoted ESG policies that limited competition and caused utility prices to rise across the country.
Texas Attorney General Ken Paxton said, “BlackRock, Vanguard and State Street have weaponized their financial power to impose their agenda on American energy markets. This has hurt consumers and violated the law.”
The lawsuit cites initiatives like Climate Action 100 and Net Zero Asset Managers Initiative as examples of coordinated efforts to influence coal producers. By reducing supply, the companies allegedly created artificial scarcity, leading to higher energy prices.
The states involved in the lawsuit, including Montana, West Virginia and Alabama, are seeking civil penalties, injunctive relief and measures to stop future anticompetitive practices. The suit also demands fines for specific violations of Texas law.
This case reflects growing opposition to ESG policies among Republican-led states, with critics arguing that these practices harm economic stability and energy independence. The lawsuit underscores the conflict between financial institutions and state governments over the future of energy policy.
