Overview

• Eleven Republican-led states, led by Texas, filed a federal lawsuit against BlackRock, Vanguard, and State Street, alleging antitrust violations and market manipulation.
• The lawsuit claims the firms used their influence to pressure coal companies to reduce production, artificially raising energy prices for consumers.
• The states argue that the companies formed a 'cartel' to advance environmental, social, and governance (ESG) policies at the expense of competition and market fairness.
• BlackRock has denied the allegations, calling the claims baseless and asserting that their investments are focused on delivering financial returns for clients.
• The lawsuit marks a significant escalation in Republican-led states' scrutiny of ESG practices, with broader implications for the financial industry and energy markets.