U.S. Government Levels Accusations of Collusion: BlackRock, State Street, and Vanguard Allegedly Manipulating Energy Prices
U.S. Government Authorities Accuse Financial Giants of Coal Industry Collusion
Prominent asset management firms, including BlackRock, State Street, and Vanguard, are under investigation for colluding against the coal industry, according to a lawsuit filed by 13 state attorneys general. Led by Texas Attorney General Ken Paxton, the legal action alleges that the firms engaged in an anticompetitive conspiracy to artificially lower coal production.
The lawsuit, named Texas et al. v. BlackRock Inc., State Street Corp., and The Vanguard Group, suggests that the companies used their shares in coal companies to reduce output. This move is alleged to have breached the Clayton Act, which prohibits acquiring minority stakes to lessen competition.
Recently, the U.S. Department of Justice and the Federal Trade Commission (FTC) have supported the state attorneys general's complaint by submitting a statement of interest. This action signifies their commitment to maintaining competition and protecting consumers, particularly during a declared national energy emergency.
BlackRock has since responded by submitting a motion to dismiss the litigation.
The allegations stem from the companies' involvement in climate-focused initiatives such as Climate Action 100+ and the Net Zero Asset Managers Initiative. These programs aim to achieve net-zero investment portfolios, which critics suggest may have motivated the asset managers' actions.
The Department of Justice and FTC are working to prevent anticompetitive practices that could result in increased energy costs for consumers. The case remains ongoing.
Sources:
- Paxton, K. (2024, Nov). AG Paxton Leads Coalition in Asset Management Coal Conspiracy Investigation. Office of the Attorney General of Texas.
- Texas et al. v. BlackRock Inc., State Street Corp., and The Vanguard Group (2025, May 27). Retrieved from courts.state.tx.us
- BlackRock v. Paxton et al. (2025, May 27). Motion to Dismiss. Retrieved from scribd.com
- U.S. Department of Justice (2025, May 27). DOJ, FTC File Statement of Interest in Support of State Attorneys General Against Coal Industry Collusion. U.S. Department of Justice.
- Garside, D. (2025, May 27). U.S. Hauls BlackRock, State Street and Vanguard Over Coal Collusion Allegations. Bloomberg Law.
- Despite the ongoing U.S. Government investigation into financial giants for coal industry collusion, some of these companies have ventured into the realm of cryptocurrency and blockchain, such as BlackRock's investment in the Digital Asset Business.
- The anticompetitive practices alleged in the coal industry case have raised questions about the business ethics of these financial giants, with some critics suggesting they might extend to altcoins, given their involvement in climate-focused initiatives, like the Net Zero Asset Managers Initiative.
