Texas Judge Allows Antitrust Suit Against BlackRock, Vanguard, State Street to Proceed

A federal judge in Texas has largely denied the request by major asset managers BlackRock, Vanguard, and State Street to dismiss a lawsuit filed by Republican state attorneys general alleging that the firms colluded to reduce coal production in the U.S. under the guise of environmental goals. U.S. District Judge Jeremy Kernodle ruled that most of the antitrust claims could proceed, citing sufficient circumstantial evidence suggesting the asset managers collectively pressured coal companies to limit output and share future production information. The lawsuit argues that the firms used their significant stakes in coal producers and participation in climate-focused investment coalitions to lessen competition and form a de facto cartel. While the judge dismissed parts of the case based on state law violations, the core allegations remain active, threatening to reshape how these firms oversee trillions of dollars in assets and engage with environmental policy. The asset managers have denied wrongdoing, with BlackRock calling the claims "absurd." This case highlights the growing legal scrutiny over the intersection of investment strategies, environmental policies, and antitrust laws.