Republican AGs Sue BlackRock, Say It Has Conspired Against Coal Production

Eleven Republican attorneys general sued BlackRock on Wednesday, alleging it had engaged in a conspiracy with other massive asset managers to constrict the market for coal.

Led by Texas, the attorneys general filed a suit on Wednesday in U.S. District Court for the Eastern District of Texas alleging that BlackRock, Vanguard, and State Street have worked together to push climate policies in order to artificially restrict the supply of coal. The states say that the financial giants, which control around $26 trillion, have violated federal and state antitrust laws.

“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices,” said Texas Attorney General Ken Paxton. “Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”

The suit was joined by Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia, and Wyoming. They argue that the asset managers have weaponized their holdings in coal companies to restrict the industry and raise prices.

“Defendants have leveraged their holdings and voting of shares to facilitate an output reduction scheme, which has artificially constrained the supply of coal, significantly diminished competition in the markets for coal, increased energy prices for American consumers, and produced cartel-level profits for Defendants,” the suit says.

“Competitive markets — not the dictates of far-flung asset managers — should determine the price Americans pay for electricity,” the Republican AGs added, saying that the companies pursued environmental, social, and governance policies that harmed investors’ bottom line.

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BlackRock responded to the lawsuit by saying it was without merit.

“BlackRock’s holdings in energy companies are regularly reviewed by federal and state regulators. We make these investments on behalf of our clients, and our focus is on delivering them financial returns,” the company told The Daily Wire.

“The suggestion that BlackRock has invested money in companies with the goal of harming those companies is baseless and defies common sense. This lawsuit undermines Texas’ pro-business reputation and discourages investments in the companies consumers rely on,” it added.

BlackRock has long faced criticism from conservatives who have argued that it prioritizes leftist activism over customer benefit. The asset manager has been involved in climate-focused groups like the Net Zero Asset Managers initiative, the United Nations Principles for Responsible Investment, and Ceres.