Federal antitrust enforcers are backing claims by Texas and 12 states that major asset managers BlackRock, Vanguard, and State Street conspired to limit coal production through climate activism. The Justice Department and FTC urged the judge to reject the managers' arguments for case dismissal, emphasizing the antitrust implications of their alleged conduct. BlackRock warned that divestment would harm access to capital and raise energy prices, while State Street and Vanguard asserted their commitment to long-term investor interests. This growing scrutiny highlights a political shift as conservative states challenge these firms' prioritization of environmental concerns over shareholder returns.
This case is about precisely the sort of conduct, including concerted efforts to reduce output, which have long been condemned under the antitrust laws.
Forcing asset managers to divest from coal companies would harm the companies' access to capital and likely raise energy prices.
State Street said it acts in the long-term interests of investors and that the lawsuit is baseless.
Vanguard reiterated its prior comment that it would defend its history of safeguarding returns for investors.
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