Texas AG Paxton Leads The Charge Against BlackRock, Vanguard And State Street, Lawsuit Filed [WATCH]

Texas Attorney General Ken Paxton, along with attorneys general from 10 other states, has filed a lawsuit against BlackRock, State Street Corporation, and Vanguard Group, three of the world’s largest institutional investors.

The suit, filed on Tuesday, accuses the companies of conspiring to manipulate the coal market, alleging anti-competitive practices that have harmed U.S. energy production and increased costs for consumers.

The lawsuit claims that the asset managers collectively used their significant stockholdings in major U.S. coal producers to influence company policies.

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According to the suit, this alleged coordination was carried out through initiatives such as Climate Action 100 and the Net Zero Asset Managers Initiative.

The goal, the lawsuit asserts, was to pressure coal companies into reducing emissions and cutting coal production by more than half by 2030.

“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda,” Paxton said in a statement.

“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 complaint argues that these actions caused a predictable increase in electricity costs for Americans and negatively impacted coal-dependent industries.

A spokesperson for BlackRock denied the allegations, calling them “baseless.”

The company emphasized its significant investments in Texas and its commitment to the state’s energy sector.

“BlackRock is deeply invested in Texas’ success. On behalf of our clients, we have billions invested in Texas energy, partnering with the state to attract investments into the Texas power grid and helping millions of Texans retire with dignity,” the spokesperson said.

BlackRock added that its energy holdings are routinely reviewed by federal and state regulators.

The company stated, “The idea that we would invest money in companies with the goal of harming them defies common sense.”

State Street also denied the claims, with a company spokesperson asserting, “This lawsuit is baseless, and we look forward to presenting the facts through the legal process. As long-term capital providers, we have a mutual interest in the long-term success of our portfolio companies.”

Will Hild, executive director of Consumers’ Research, a consumer advocacy group, praised Paxton’s lawsuit, framing it as a critical move against Environmental, Social, and Governance (ESG) investing practices.

“Today’s lawsuit is a bombshell to the ESG asset manager cartel,” Hild said. “As we’ve been saying all along, ESG isn’t an investment strategy—it’s a conspiracy against the public.”

The lawsuit highlights growing opposition to ESG investing strategies, which critics argue prioritize political and environmental agendas over financial performance.

Paxton and his counterparts aim to hold these companies accountable for what they describe as illegal collusion that undermines the coal industry and increases energy costs for Americans.

As the legal process unfolds, the case is likely to reignite debates about the role of large asset managers in shaping corporate policies and the broader impact of ESG-driven initiatives on industries and consumers.

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