(LifeSiteNews) –– Texas, under Attorney General Ken Paxton, along with ten other states, has filed a landmark lawsuit against financial giants BlackRock, Vanguard, and State Street, accusing them of conspiring to manipulate the coal market and impose their radical environmentalist agenda at the expense of American consumers.
Over several years, the three asset managers acquired substantial stockholdings in every significant publicly held coal producer in the United States, thereby gaining the power to control the policies of the coal companies. The lawsuit notes that their actions have driven up energy prices and violated state and federal laws.
“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda,” said Paxton in a statement. “BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices.”
The complaint, filed on November 27, alleges that the three firms, among the largest asset managers in the world, used their collective influence to pressure coal producers into cutting production by over 50% by 2030.
This effort was coordinated through initiatives like Climate Action 100+ and the Net Zero Asset Managers Initiative, according to the filing.
According to the fliling:
- “The defendants have weaponized their market dominance to undermine coal production and deceptively influence publicly traded coal companies to meet their climate objectives.”
- “In doing so, they have caused economic harm to millions of Americans by driving up energy costs and limiting energy choices.”
The lawsuit further accuses the firms of deceiving investors by applying ESG (Environmental, Social, and Governance) principles even to non-ESG funds. “This is a direct violation of the trust investors place in their asset managers,” the filing claims.
Joining Texas in this legal challenge are Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia, and Wyoming. The plaintiffs seek punitive and compensatory damages, along with injunctive relief to prevent further anticompetitive practices.
This lawsuit represents the most significant pushback yet against the growing influence of ESG investing. It comes amid broader efforts to combat what many view as the imposition of progressive agendas through financial and corporate governance.
Drafted with the assistance of AI.