A group of 11 states, spearheaded by Texas, has filed a lawsuit against BlackRock, Vanguard and State Street, accusing the firms of anticompetitive practices in the coal industry. The lawsuit alleges the companies conspired to suppress coal production, causing energy prices to spike.
The complaint, filed in the Eastern District of Texas, claims the firms used their combined ownership in coal producers to push ESG policies, undermining market competition. These actions, the lawsuit contends, hurt American consumers while enriching the firms through higher profits.
Texas Attorney General Ken Paxton said, “BlackRock, Vanguard and State Street formed a cartel to rig the coal market. Their actions have driven up energy costs and harmed American families.”
Initiatives like Climate Action 100 and Net Zero Asset Managers Initiative are highlighted as central to the firms’ strategy. By reducing coal supply, the companies allegedly created an artificial scarcity, leading to skyrocketing utility bills for consumers.
The lawsuit seeks financial penalties and measures to prevent future anticompetitive behavior. Joining Texas in the legal action are 10 other states, including Montana, Wyoming and West Virginia, each of which has significant energy sectors.
This lawsuit reflects mounting opposition to ESG initiatives, which critics argue prioritize political agendas over economic fairness. The case represents a broader effort to protect American energy independence from external manipulation.
