FTC, DOJ Back States in Coal Manipulation Suit Against BlackRock, Vanguard, State Street

The U.S. Department of Justice and Federal Trade Commission have filed a statement of interest supporting a lawsuit accusing BlackRock, Vanguard, and State Street of conspiring to suppress coal production in the United States to increase prices and profits. The complaint, led by Texas Attorney General Ken Paxton and joined by attorneys general from 12 other states, alleges that these asset managers pressured coal companies to adopt environmental, social, and governance (ESG) targets, resulting in reduced coal output and higher electricity costs for Americans. The agencies argue that these actions violate the Clayton Antitrust Act of 1914 and that social justifications do not exempt the firms from antitrust laws. The Trump administration has framed this case within its broader agenda of energy dominance, emphasizing the importance of coal production to national energy security and criticizing ESG considerations as a guise for harming the coal industry. The asset managers deny any conspiracy or unlawful behavior, asserting that their actions did not harm the industry or constitute collusion. The DOJ and FTC urge the court to reject the asset managers' legal arguments and continue the case.