🔥 BlackRock Inc., Vanguard Group Inc. and State Street Corp. were sued by a group of states led by Texas for allegedly breaking antitrust law by boosting electricity prices through their investments, in the highest-profile lawsuit yet against the beleaguered ESG industry.
Texas… pic.twitter.com/SLo0snWnmx
— Melissa Hallman (@dotconnectinga) November 27, 2024
BlackRock Inc., Vanguard Group Inc. and State Street Corp. were sued by a group of states led by Texas for allegedly breaking antitrust law by boosting electricity prices through their investments, in the highest-profile lawsuit yet against the beleaguered ESG industry.
Texas Attorney General Ken Paxton and 10 other states claim the money managers combined their market clout and membership in climate groups to pressure coal producers to cut output. Shortages have caused Texans and residents of the other states to pay higher power bills, according to the lawsuit, filed Wednesday in federal court in Texas.
The Republican-led states, including West Virginia and Montana, are asking the court to bar the three largest US money managers from using their stock in coal companies to vote on shareholder resolutions and take other steps in a way that restrains output and limits market competition.
Spokespeople for BlackRock and Vanguard didn’t have an immediate comment on the lawsuit. State Street didn’t immediately respond to emails seeking comment.
The complaint marks the culmination of a years-long investigation by GOP officials who have taken aim at Wall Street’s efforts to address climate change, the main pillar of the environmental, social and governance strategy. Pressure has mounted on investment firms since last year when state attorneys general warned them that Americans’ savings shouldn’t be used to “push political goals” during the shareholder voting season.
In response, climate advocates say environmental risks are financial risks and that addressing them is among investors’ fiduciary responsibilities.
https://finance.yahoo.com/news/blackrock-vanguard-accused-violating-antitrust-135317552.html
Attorney General Ken Paxton Sues BlackRock, State Street, and Vanguard for Illegally Conspiring to Manipulate Energy Markets, Driving Up Costs for Consumers