(Luis Cornelio, Headline USA) Texas Attorney General Ken Paxton, joined by 10 other attorneys general, sued three of the world’s largest investment firms, alleging antitrust violations and attempts to manipulate the coal market.
The lawsuit, filed Wednesday in federal court, accuses BlackRock, State Street Corporation and Vanguard Group of pressuring coal producers to implement so-called green energy goals. These demands came after the investing firms acquired substantial stockholdings in the coal market in 2021.
According to Paxton, the three investment giants coordinated through the Climate Action 100 and Net Zero Asset Managers Initiative to signal their “mutual intent to reduce the output of thermal coal, which predictably increased the cost of electricity for Americans across the United States.”
These firms also allegedly deceived investors who chose not to invest in ESG funds to maximize profits, yet the firms pursued ESG strategies regardless.
🚨BREAKING: Texas Sues BlackRock, State Street, and Vanguard for Illegally Conspiring to Manipulate Energy Markets, Driving Up Costs For Consumers
Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized… pic.twitter.com/WrpftEr0cJ— Attorney General Ken Paxton (@KenPaxtonTX) November 27, 2024
Paxton slammed the investment giants in a press release, asserting that Texas “will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda.”
Paxton added, “BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices. Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”
The other states joining the lawsuit are Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia and Wyoming. The Buzbee Law Firm and Cooper & Kirk serve as outside counsel.
In a separate press statement, West Virginia Attorney General Patrick Morrisey echoed Paxton’s concerns.
“Again, this is an example of companies pushing their climate agenda, using investments to force other companies and people to abide by their ideology,” Morrisey stated. “These companies should only be maximizing returns for investors, not working to advance their radical climate change agenda by leveraging their holdings and pressuring American energy companies.”
Read the lawsuit below.
