AUSTIN, Texas — Texas Attorney General Ken Paxton is suing three investing companies, accusing them of conspiring to manipulate energy markets.
Paxton and ten other attorneys general filed a lawsuit against BlackRock, State Street Corporation and Vanguard.
They're accusing the companies of acquiring substantial stockholdings in U.S. coal producers and then weaponizing their shares to pressure the coal companies with "green energy" goals. Paxton’s office said the investment companies pushed to reduce coal output by more than half by 2030.
The lawsuit alleges that deliberately and artificially constricting supply increased prices and enabled the investment companies to produce “extraordinary revenue gains.” The lawsuit claims the move violated federal laws that prevent a major shareholder, or a group of shareholders, from using their shares to lessen competition.
“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 Attorney General Paxton. “Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”
KVUE reached out to all three of the companies.
BlackRock was the only one to offer a statement, saying, "The suggestion that BlackRock has invested money in companies with the goal of harming those companies is baseless and defies common sense. This lawsuit undermines Texas' pro-business reputation and discourages investments in the companies consumers rely on."
BlackRock said its holdings 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.