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Texas and 11 States File Antitrust Lawsuit Against BlackRock, Vanguard, State Street for Energy Market Manipulation

Nov 27, 2024, 02:37 PM

Texas Attorney General Ken Paxton, joined by attorneys general from 10 other Republican-led states, has filed a federal antitrust lawsuit against BlackRock, Vanguard, and State Street. The lawsuit accuses these major asset managers of illegally conspiring to manipulate energy markets, resulting in higher energy costs for consumers. The states allege that the firms leveraged their market power and ties to climate-focused initiatives to pressure coal producers, including Peabody Energy, into reducing output, thereby driving up electricity prices. This legal action, involving 11 states, marks one of the most high-profile challenges to the environmental, social, and governance (ESG) investment strategies employed by these financial giants. The lawsuit claims that these practices violate antitrust laws and harm both consumers and the energy sector.