West Virginia Attorney General Patrick Morrisey on Wednesday joined Texas and nine other states in an antitrust lawsuit against three of the largest institutional investors in the world.
The multi-count complaint against asset managers Blackrock, State Street and Vanguard was filed in the U.S. District Court for the Eastern District of Texas Tyler Division. It alleges the firms had created an anticompetitive environment—have leveraged their holdings and voting of shares to advance their environment, social and governance (ESG) agenda. According to the lawsuit, the firms’ move significantly diminished competition in the markets for coal, increased energy prices for American consumers and produced cartel-level profits for the asset managers.
In BlackRock’s case, the firm allegedly deceived its investors about the nature of its funds.
“Again, this is an example of companies pushing their climate agenda, using investments to force other companies and people to abide by their ideology,” Attorney General Morrisey said. “These companies should only be maximizing returns for investors, not working to advance their radical climate change agenda by leveraging their holdings and pressuring American energy companies.”
According to the lawsuit, the alleged schemes by these firms appear to have been designed to disrupt the country’s energy industry.
According to the U.S. Energy Information Administration, in 2022, West Virginia was the second-largest coal producer in the nation—coal-fired electric power plants accounted for 89% of the state's total electricity net generation. Renewable energy resources—primarily hydroelectric power and wind energy—contributed 7% and natural gas provided about 4%.
The West Virginia Office of Miners’ Health & Safety Training recorded 55,067 people as being employed in the state’s coal mines (FY2023).
Attorney General Morrisey joined the Texas-led lawsuit with Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska and Wyoming.
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