Texas and 10 other states have filed a lawsuit against BlackRock, Vanguard and State Street, accusing the firms of colluding to manipulate the coal market. The lawsuit claims these companies’ actions violated antitrust laws, harming consumers and undermining market competition.
The lawsuit alleges that the firms used their ownership stakes in major coal producers to enforce ESG policies, reducing coal output and driving up energy costs. This strategy, the suit contends, prioritized a green energy agenda over economic stability.
Texas Attorney General Ken Paxton criticized the firms, saying, “Their actions have led to higher energy prices for American families while they profit from a manipulated market.”
Programs like Climate Action 100 and Net Zero Asset Managers Initiative were named as tools the firms allegedly used to pressure coal companies into reducing production. These policies, the lawsuit argues, created an artificial scarcity in the energy market.
The lawsuit seeks to hold the companies accountable for violations of the Clayton Act and Sherman Antitrust Act, as well as state antitrust laws. It also requests financial penalties and injunctive relief to prevent future market manipulation.
This case highlights growing resistance to ESG-driven policies, with states challenging their impact on energy independence and consumer costs. The lawsuit underscores the tension between environmental goals and economic realities in the energy sector.
