GOP AGs sue BlackRock and other investment companies over environmental activism

WASHINGTON (TNND) — Several Republican attorneys general filed a lawsuit Wednesday against three major U.S. investment companies over concerns about their environmental activism.

Texas Attorney General Ken Paxton and 10 other AGs accused BlackRock, Vanguard and State Street of violating antitrust laws by promoting environmental, social and governance goals. The companies are among the largest investors in U.S. coal production and are said to pose a threat to competition within the energy industry.

The company’s actions led to increased coal and energy prices, the lawsuit states.

“As demand for the electricity Americans need to heat their homes and run their businesses has increased, the supply of coal used to produce that electricity has been artificially reduced — and the price has skyrocketed “ says the document. “Defendants have reaped the rewards of higher returns, higher fees and higher profits, while American consumers have paid the price in higher electricity bills and higher costs.”

The 109-page document accuses the companies of seven different violations. It requires BlackRock to pay $10,000 per violation, in addition to other fines.

“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda,” Paxton wrote on X. “BlackRock, Vanguard and State Street have formed a cartel to manipulate the coal market and artificially inflate the coal market Reduce energy supply and rising prices. Their conspiracy has harmed American energy production and harmed consumers. This is a blatant violation of state and federal law.”

BlackRock told the National News Desk (TNND) that it has complied with federal regulations regarding its exposure to the energy sector.

“BlackRock’s holdings in energy companies are regularly reviewed by federal and state regulators,” it said. “We make these investments on behalf of our clients and our focus is on delivering financial returns to them.”

“The allegation that BlackRock invested money in companies with the intent to harm those companies is baseless and defies common sense,” it added. “This lawsuit undermines Texas’ pro-business reputation and discourages investment in the companies consumers rely on.”

State Street called the lawsuit “baseless” in a statement sent to TNND Friday morning.

“Tate Street represents the long-term financial interests of investors with a focus on increasing shareholder value. As long-term investors, we have a shared interest in the long-term success of our portfolio companies,” said a State Street spokesperson.

Vanguard did not respond to an emailed request for comment from TNND on Wednesday.

The lawsuit follows President-elect Donald Trump’s decision to appoint Liberty Energy CEO Chris Wright to head the Department of Energy. He will be tasked with overseeing “U.S. energy dominance,” along with Trump’s pick to head the Interior Department, North Dakota Gov. Doug Burgum told Trump.

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