Attorney General Ken Paxton is suing three major investment firms, accusing them of conspiring to “artificially constrict the market for coal through anticompetitive trade practices.”
The firms named in the lawsuit are BlackRock, Vanguard, and State Street.
Paxton alleges the companies have leveraged their shares in coal companies to push “green energy” initiatives, which he argues has led to higher electricity costs for consumers. The lawsuit accuses the firms of violating both federal laws and Texas’ antitrust and deceptive trade practices statutes by reducing competition in the coal market.
“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,” stated Paxton. “Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.”
Houston attorney Tony Buzbee, who represented Paxton during his impeachment trial in the Senate last year, has been brought on as outside counsel for the case. Buzbee called the lawsuit a “landmark anti-trust case.”
“The total recovery in this case could amount to billions of dollars. I am proud to stand with Attorney General Paxton on behalf of the State of Texas to right this injustice and to seek relief for the citizens of the great State of Texas. Texans can’t and won’t tolerate this type of conduct any further,” Buzbee wrote in a social media post.
Texas is joined by 10 other states in pursuing the lawsuit.
A spokesperson for BlackRock offered the following statement:
BlackRock is deeply invested in Texas’ success. On behalf of our clients, we have billions invested in Texas energy, partnering with the state to attract investments into the Texas power grid and helping millions of Texans retire with dignity.
BlackRock’s holdings in 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 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.
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