Alabama Attorney General Steve Marshall has joined a coalition of states in filing a lawsuit against three major asset managers: BlackRock, State Street Corporation, and Vanguard Group. The lawsuit alleges that these companies conspired to manipulate the coal market by reducing output and raising prices through anticompetitive practices.
The suit claims that over several years, the three firms acquired significant stockholdings in every major publicly traded coal producer in the United States. This allegedly allowed them to influence coal company policies significantly. In 2021, they reportedly used this influence to announce plans to use their shares to push for reduced coal production as part of "green energy" initiatives. The goal was purportedly to cut coal output by more than half by 2030.
Attorney General Marshall stated, "Americans think that when they entrust their hard-earned savings to Wall Street firms, those firms will seek profits, not radical environmental goals. But time and again, companies like BlackRock, State Street, and Vanguard invest as activists, not dispassionate fiduciaries."
Marshall accused the companies of acting out of greed under the guise of pursuing "environmental justice," alleging they aimed to profit while harming the coal industry and increasing energy costs for millions.
The lawsuit also notes that BlackRock, Vanguard, and State Street signed pledges such as "Climate Action 100" and "Net Zero Asset Managers Initiative," signaling an intent to reduce thermal coal output. These actions allegedly led to higher electricity costs nationwide.
Furthermore, it is claimed that these firms misled investors who opted for non-ESG funds by pursuing ESG strategies despite contrary representations. By artificially limiting supply and driving up prices, the investment companies are said to have generated significant revenue gains.
The legal action argues that these activities breached multiple federal laws intended to prevent shareholders from engaging in anticompetitive behavior or diminishing competition. Additionally, it contends that state antitrust and deceptive trade practices laws were violated.