A coalition of 11 states, led by Texas, has sued BlackRock, Vanguard and State Street, alleging the firms conspired to suppress coal production and inflate energy prices. The lawsuit claims these actions violated federal and state antitrust laws, harming American consumers.
The complaint, filed in the Eastern District of Texas, argues the firms used their ownership stakes in coal producers to push ESG policies. This approach, the lawsuit alleges, reduced competition, created artificial scarcity and drove up utility costs.
Texas Attorney General Ken Paxton stated, “These companies weaponized their investments to pursue a political agenda, leaving American families to pay the price in higher energy bills.”
Programs like Climate Action 100 and Net Zero Asset Managers Initiative are cited as evidence of coordinated efforts to reduce coal output. The lawsuit claims these actions directly undermined free-market principles while misleading investors about the nature of their funds.
The states are seeking civil penalties, including $10,000 per violation, and measures to prevent future anticompetitive practices. The lawsuit also calls for injunctive relief to restore fairness in the energy market.
This legal challenge reflects a broader effort by states to counter ESG-driven policies that critics argue harm American energy production. The outcome of the case could have significant implications for the future of the U.S. energy industry.
