(SQAUK) — Texas Attorney General Ken Paxton and ten other Republican-led states have decisively filed a lawsuit against prominent asset management firms BlackRock, State Street, and Vanguard. This bold legal action charges these companies with conspiring to manipulate energy markets by slashing coal production, resulting in unjustly higher electricity prices for consumers.
The complaint claims these firms leveraged their significant shareholdings in coal companies to pressure them into reducing output, aligning with their environmental, social, and governance (ESG) objectives. This coordinated effort allegedly constrained the coal supply, resulting in higher energy costs for Americans.
Attorney General Paxton stated, ‘Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized environmental agenda.’ He stressed that the alleged conspiracy has significantly harmed American energy production and consumers, violating state and federal laws, an apparent injustice.
This lawsuit is part of a larger Republican initiative to challenge what they view as ‘woke capitalism’ and the influence of traditional energy sectors. The outcome could have profound implications for the role of large asset managers in shaping corporate policies and market dynamics, underscoring the importance of this legal action.
