Move over Bond villains; we’ve got new contenders for world domination: BlackRock, Vanguard, and State Street. These financial giants—who manage a mind-blowing $26 trillion in assets—are accused of using their massive wealth to turn coal stocks into their own personal Monopoly game. A lawsuit filed by 11 states, led by Texas, claims these firms teamed up to control the coal market, crush competition, jack up prices, and make Americans pay the price.
If you thought “green energy” was about saving the planet, think again. The lawsuit paints a picture of these firms using programs like the Climate Action 100 and Net Zero Asset Managers Initiative to “weaponize” their shares, not to combat climate change altruistically but to strangle coal production. The result? Energy supply plummets, utility bills skyrocket, and Americans freeze while these firms rake in higher returns and fees.
Many investors feel betrayed after signing up for non-ESG funds, expecting their money to pursue profits instead of green agendas. However, those funds were reportedly redirected into the same ESG strategies. Imagine buying a ticket for a business-class seat and finding yourself crammed into the economy—except the flight attendants are charging you extra for legroom they stole.
BlackRock and State Street have addressed accusations of misleading the public about their environmental practices, calling these claims “baseless.” They maintain that their main priority is to serve their shareholders. They say their investment decisions focus on the best interests of their financial stakeholders, not on a hidden agenda. However, owning 34% of the largest coal companies does not suggest innocence.
The lawsuit doesn’t pull punches, accusing the firms of violating everything from the Sherman Antitrust Act to the Clayton Act. Ken Paxton, Texas Attorney General, and his allies argue this unholy cartel orchestrated a market rigging scheme, reducing coal output and driving up energy costs. It’s the kind of corporate greed that gives capitalism a bad name, all while masquerading as eco-activism.
These companies are being accused of buying up major shares in nearly every significant publicly traded coal producer in the U.S. to gain control over their policies. It also alleges the companies violated state antitrust laws of Texas, Montana, and West Virginia; Blackrock also allegedly violated the Texas Business and Commerce Code by committing “false, deceptive, or misleading acts.”
