Missouri – Targeting the coal industry, Missouri’s Attorney General Andrew Bailey announced that is part a legal battle against three of the biggest investment firms in the world—BlackRock, State Street Corporation, and Vanguard Group—claiming they illegally manipulated the energy market. Supported by a coalition of eleven states, this landmark case claims that these companies have engaged in anticompetitive behavior artificially limiting the coal market to further their environmental goals at the expense of Missouri’s consumers.
The complaint focuses on BlackRock, Vanguard, and State Street’s combined acquisition of large stockholdings in every major publicly traded coal producer in the United States. This strategic accumulation of shares granted them unprecedented control over these companies’ policies, particularly in dictating a drastic reduction in coal production to meet “green energy” goals. Using projects like the Climate Action 100 and the Net Zero Asset Managers Initiative, these companies had publicly pledged by 2021 to using their influence to halve coal output by 2030.
Attorney General Bailey claims that these policies directly affect energy rates, driving up the cost of electricity.
“I will not stand idly by while major companies unlawfully hamper energy production and raise prices for Missouri consumers,” said Attorney General Bailey. “My office will always protect consumers from those weaponizing industries to satisfy their radical agenda.”
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The legal action also covers the allegedly deceptive strategies utilized by these investing titans, which misled hundreds of thousands of investors. These investors selected non-Environment, Social, and Governance (ESG) funds anticipating conventional investment tactics. Instead, they found their money diverted toward ESG-oriented policies, therefore undermining the companies’ original pledges and optimizing their profits under false pretenses.
The lawsuit claims that these policies not only artificially limited supply and raised prices but also violated many federal statutes meant to stop shareholders from using their interests to discourage competition or participate in other limiting trade activities.
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Attorneys general from Alabama, Arkansas, Indiana, Iowa, Kansas, Montana, Nebraska, Texas, West Virginia, and Wyoming, all joined Missouri in their legal battle against what they see as an overreach by these banking behemoths into the energy industry.
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This case marks a turning point in the continuous discussion on corporate influence on energy regulations and the balancing act between preserving consumer interests and market stability and so promoting environmental goals.
