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BlackRock, Vanguard, State Street sued by 11 GOP states, in ESG lawsuit

These large asset management firms violated antitrust law through climate activism that resulted in reduced coal production and boosted energy prices, according to a lawsuit filed by Texas attorney general Ken Paxton.

By Lynn Cavanaugh | December 02, 2024 at 01:48 PM
Texas Attorney General Ken Paxton. Photo: Diego M. Radzinschi/ALM

Last week, asset management firms BlackRock, State Street and Vanguard were sued by a group of 11 Republican states, led by Texas, for allegedly breaking antitrust laws by reducing coal production and boosting electricity prices through their investments, in the highest profile lawsuit yet against the beleaguered environmental, social and governance goals industry, seeking billions in damages.

In a complaint that marks the culmination of a years-long probe by GOP officials taking aim at Wall Street’s efforts to address climate change, Texas Attorney General Ken Paxton sued three of the largest institutional investors in the world, for conspiring to artificially constrict the market for coal through anticompetitive trade practices. This pressured coal companies to slash output and reduce carbon emissions from coal by more than 50% by 2030, driving up consumers’ utility bills, according to the lawsuit.

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