BlackRock, Vanguard, and State Street Corporation have asked a Texas court to dismiss a lawsuit that accuses them of conspiring to reduce coal production. The lawsuit, filed in November 2024 by Texas and ten other states, alleges that the investment firms violated antitrust laws by using their collective shareholdings in coal companies to limit output and increase energy prices. The complaint claims that the firms pressured coal producers through proxy voting and participated in climate initiatives, such as the Net Zero Asset Managers Initiative and Climate Action 100+, to enforce restrictions on production. The lawsuit also accuses BlackRock of misleading shareholders by stating that its non-ESG funds focused solely on financial returns while allegedly using its holdings to promote climate-related policies.
In response, the firms argued that the lawsuit was based on untested legal theories and should be dismissed. They stated that the complaint does not provide any instance of them directly instructing coal companies to cut production. The firms also warned that reinterpreting antitrust laws in this way could negatively impact both coal producers and investors. BlackRock, Vanguard, and State Street collectively manage over $26 trillion in assets, giving them significant influence over corporate policies, executive compensation, and environmental strategies.
