Texas AG Ken Paxton and 10 Attorneys General File Lawsuit Against BlackRock, State Street, and Vanguard for Violating Antitrust Laws
The lawsuit argues that American coal producers have submitted to the demands of BlackRock’s Larry Fink and fellow asset managers who have wielded their influence to artificially depress the supply of coal, making the price of coal increase leading to higher costs for consumers.
According to the lawsuit, the outsized influence these asset managers have on coal-producing companies comes from ownership of a substantial portion of stocks which allows BlackRock and others to exert control of these companies, forcing them to comply with ESG goals. As noted in the filing, these asset managers have publicly worked in tandem to leverage their combined shares to pressure coal companies to align with net-zero goals, like reducing carbon emissions from coal by more than 50%. Collectively, asset managers are able to leverage their holdings and use tools like proxy voting to significantly diminish the competition for coal in order to push a political agenda.
The AGs argue that not only do these actions violate antitrust, but BlackRock actively deceived investors about its funds. By consistently using all holdings to advance its climate agenda (including the non-ESG funds), BlackRock violated its pledge to investors. Among other things, the AGs demand these asset managers to completely divest from coal (page 96):
Order such injunctive relief as is necessary, including but not limited to divestiture, to restrain Defendants from using the stock they have acquired in the Coal Companies by the voting or granting of proxies or otherwise to restrain output and limit competition in the relevant markets identified above, or from engaging in any other practices with the same purpose and effect as the challenged practices
LIST OF SIGNATORIES:
- Texas Attorney General Ken Paxton
- Alabama Attorney General Steve Marshall
- Arkansas Attorney General Tim Griffin
- Indiana Attorney General Todd Rokita
- Iowa Attorney General Brenna Bird
- Kansas Attorney General Kris Kobach
- Missouri Attorney General Andrew Bailey
- Montana Attorney General Austin Knudsen
- Nebraska Attorney General Mike Hilgers
- West Virginia Attorney General Patrick Morrisey
- Wyoming Attorney General Bridget Hill
Below is the complaint:
Complaint Doc 1 States v Bla by Joe Ho on Scribd