A coalition of Republican attorneys general filed a federal lawsuit last week alleging a trio of investment management companies are illegally manipulating the energy market to slash domestic coal production.
The challenge, led by Texas Attorney General Ken Paxton, claims BlackRock, State Street and Vanguard used their influence investing in publicly traded coal companies to reduce coal production and increased utility prices for American consumers.
“Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized ‘environmental’ agenda. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices,” said Paxton in a press release announcing the suit last Wednesday. “Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”
Attorneys general for Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia and Wyoming also joined the suit.
