
Eleven states, led by Texas, have filed a lawsuit against BlackRock, Vanguard and State Street, alleging that the firms conspired to manipulate the coal market. The lawsuit claims these companies violated antitrust laws by using their ownership in coal producers to push a green energy agenda that reduced competition and drove up energy costs.
The lawsuit, filed in the Eastern District of Texas, accuses the firms of artificially limiting coal production to promote Environmental, Social and Governance (ESG) policies. These actions, the complaint alleges, resulted in higher utility prices for American consumers and higher profits for the companies.
Texas Attorney General Ken Paxton said, “BlackRock, Vanguard and State Street weaponized their financial power to push an environmental agenda, hurting American families in the process.” The lawsuit also claims that the companies deceived investors by applying ESG strategies to funds marketed as non-ESG.
The firms allegedly coordinated their actions through initiatives like Climate Action 100 and the Net Zero Asset Managers Initiative. These programs, the lawsuit argues, were designed to reduce coal output and raise energy prices nationwide.
The legal action, which includes states like Alabama, Montana and West Virginia, seeks civil penalties, injunctive relief and a halt to the alleged anticompetitive practices. The suit also demands fines, including $10,000 per violation, for BlackRock’s actions under Texas law.
This case is part of a broader push by Republican-led states to combat ESG policies that critics say harm economic stability and energy independence. It highlights growing tensions between state governments and large financial institutions over the future of the U.S. energy sector.