Missouri Attorney General Andrew Bailey, along with a coalition of 11 states, has filed a lawsuit against BlackRock, Vanguard, and State Street.
Wow. This is WINNING. Andrew Bailey is suing Blackrock, Vanguard and State Street for pushing the ‘Climate Change’ scam. pic.twitter.com/IvtYiVdbZw
— Liz Churchill (@liz_churchill10) December 17, 2024
Here are the key details of this legal action:
- Initiator: The lawsuit was led by Andrew Bailey, the Attorney General of Missouri, under the broader initiative by Texas Attorney General Ken Paxton.
- States Involved: The states involved in the lawsuit alongside Missouri are Texas, Alabama, Arkansas, Indiana, Iowa, Kansas, Montana, Nebraska, West Virginia, and Wyoming.
- Accusations: The lawsuit accuses these three major asset managers of violating antitrust laws through climate activism. Specifically, they are alleged to have conspired to reduce coal production, thereby artificially increasing energy prices. This was supposedly done by leveraging their significant stockholdings in coal companies to push for reduced coal output in alignment with environmental, social, and governance (ESG) goals.
- Legal Basis: The states claim that BlackRock, Vanguard, and State Street formed an “investment cartel” to manipulate the energy market, particularly the coal sector, which has led to higher electricity prices for consumers. The lawsuit references their involvement in climate advocacy groups like Climate Action 100+ and the Net Zero Asset Managers Initiative, where commitments were made to reduce carbon emissions significantly by 2030.
- Specific Allegations:
- The asset managers are accused of holding substantial shares in major coal companies like Peabody Energy and Arch Resources, using this ownership to influence company policies towards reducing coal output.
- BlackRock, in particular, is accused of misleading investors by using non-ESG funds to advance climate goals while claiming these investments were solely for shareholder value.
- Intent of the Lawsuit: The states seek to block these asset managers from using their investments to vote on shareholder resolutions or take other actions that could undermine coal production. They also aim to impose civil fines for violations of federal antitrust and state consumer protection laws.
- Defendants’ Response: BlackRock and State Street have responded by calling the lawsuit baseless, asserting that their investments are made in the long-term financial interests of their clients. Vanguard has not immediately commented on the lawsuit according to available sources.
- Context: This lawsuit is part of a broader pushback against ESG investing by Republican-led states, reflecting a political and ideological conflict over how investment should balance financial returns with environmental considerations.
- Public and Political Sentiment: Posts on X reflect a mix of support for the lawsuit, with some users lauding the action against what they describe as manipulation of energy markets for an “environmental agenda,” while others view it as part of a larger political strategy against climate change initiatives.
This lawsuit represents one of the most high-profile legal challenges against ESG-focused investment strategies, highlighting the tension between economic policy, environmental goals, and antitrust law.