Republican Attorneys General Sue BlackRock for Conspiring Against Coal

In a bold move against what they see as the weaponization of the financial industry, eleven Republican attorneys general have filed a lawsuit against BlackRock and other major asset managers, accusing them of conspiring to restrict coal production. The lawsuit, led by Texas Attorney General Ken Paxton, was filed in the U.S. District Court for the Eastern District of Texas and names Vanguard and State Street as co-defendants.

The suit alleges that the asset management giants, which collectively control $26 trillion, used their influence to push climate policies that artificially reduced the supply of coal, a critical energy source. This alleged cartel behavior, the plaintiffs argue, has inflated energy prices, harmed consumers, and hurt the coal industry.

“BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices,” said AG Paxton. “This is a stunning violation of state and federal law.”

The lawsuit accuses the defendants of violating antitrust laws by:

• Manipulating Coal Markets: Using their holdings to reduce coal output and diminish competition.

• Artificial Price Inflation: Restricting coal supply to drive up energy costs for consumers.

• Cartel Profits: Profiting from an artificially constrained coal market while pushing environmental, social, and governance (ESG) initiatives.

The Republican AGs argue that free market principles not climate-driven agendas should dictate energy prices, emphasizing the harm caused to American energy independence.

Texas is joined in the lawsuit by Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia, and Wyoming. The coalition reflects a growing frustration among Republican leaders with financial institutions they believe are prioritizing ESG policies over economic interests.

“Competitive markets not the dictates of far-flung asset managers should determine the price Americans pay for electricity,” the lawsuit states.

In response, BlackRock dismissed the lawsuit as baseless and counterproductive.

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

The asset manager, frequently criticized by conservatives for its involvement in climate-focused initiatives like the Net Zero Asset Managers alliance, argued that the lawsuit undermines Texas’ reputation as a pro-business state.

BlackRock and its peers have faced growing criticism for their support of ESG initiatives, which many conservatives view as prioritizing leftist activism over shareholder returns. Groups like the United Nations Principles for Responsible Investment and Ceres have drawn scrutiny for pushing environmental goals that critics say conflict with economic interests.

As energy prices rise and the coal industry faces increasing pressure, Republican AGs are doubling down on their fight to preserve affordable energy for American consumers. The lawsuit against BlackRock and its counterparts underscores a broader pushback against what GOP leaders see as overreach by financial elites and environmental activists.

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