A coalition of 11 Republican-led states lawsuit On Wednesday, it accused three asset management companies of violating antitrust laws against BlackRock Inc., Vanguard Group Inc. and State Street Corp.
The company's efforts to promote environmental, social and governance standards have led to lower coal production and higher energy prices, according to the complaint.
The companies “formed a cartel to rig the coal market.”
The complaint alleges that financial institutions used their power to “artificially limit the supply of coal, significantly reduce competition in the coal market, raise energy prices for U.S. consumers, and reap cartel-level profits.” I created it,” he said.
Reuters The three financial institutions reported managing more than $26 trillion in assets.
The lawsuit says both companies have been pressuring coal companies to reduce carbon emissions by more than 50% by 2030.
“Competitive markets, not the dictates of distant asset managers, should determine the price Americans pay for electricity,” it says.
He led a coalition of states that included Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia, and Wyoming. Texas Attorney General Ken Paxton (R).
Paxton accused the asset managers of “illegally colluding to manipulate energy markets.”
“These companies also defrauded thousands of investors who chose to invest in non-ESG funds to maximize profits. of funds pursued ESG strategies,” he argued.
The lawsuit accuses BlackRock of using all of its holdings, including non-ESG funds, to advance climate change goals and “actively misleading investors about the nature of its funds.”
Paxton told Turning Point USA founder and CEO Charlie Kirk that declining coal production will require the United States to buy more energy overseas.
“It's impacting consumers in all kinds of ways,” he said. said.
Paxton writes: post In X, “Texas will not tolerate its financial industry being illegally weaponized for destructive, politicized 'environmental' policies. BlackRock, Vanguard, and State Street have formed a cartel. By rigging the coal market and artificially reducing energy supplies, their conspiracy is harming America's energy production and harming consumers, in shocking violation of state and federal law. .”
BlackRock said in a statement: bloomberg It argued that the lawsuit “tarnishes Texas' pro-business reputation.”
“The allegation that BlackRock invested funds in companies for the purpose of harming them is baseless and contrary to common sense,” the company said in a statement.
Vanguard Group and State Street Corporation did not respond to requests for comment from Reuters or Bloomberg.
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