In a significant legal triumph, Texas Attorney General Ken Paxton has successfully advanced his battle against the Environmental, Social, and Governance (ESG) practices of major financial institutions.
A federal judge in the Eastern District of Texas has ruled against dismissing an antitrust lawsuit filed by Texas against financial behemoths BlackRock, Vanguard, and State Street. This lawsuit, spearheaded by Paxton, accuses these firms of forming an "investment cartel" aimed at undermining the American energy sector.
"BREAKING: I just secured a major win against BlackRock, Vanguard, and State Street," Paxton announced. "These financial corporations created an investment cartel to illegally control national energy markets, and todays victory represents an important step in holding them accountable."
According to Gateway Pundit, the lawsuit contends that these financial giants, wielding control over trillions in assets, have leveraged their substantial stakes in nearly every major U.S. coal company to enforce radical ESG policies.
Paxton, alongside 13 other Republican-led states, argues that this maneuver was a deliberate attempt to stifle coal production, inflate prices, and manipulate the U.S. energy markets under the guise of "climate stewardship."
The court's decision highlights how BlackRock, Vanguard, and State Street allegedly engaged in a coordinated effort to reduce coal output. The judge noted, "Therefore, all Defendants publicly joined climate initiatives promoting goals that naturally resulted in the reduction of coal output.
These allegations alone are strong evidence of a conscious commitment to a common scheme designed to achieve an unlawful objective. Second, all Defendants confirmed these climate-based goals through public statements. And all used their influence to act in furtherance of the climate-based initiatives by either proxy voting or engaging directly with the Coal Companies leadership, or both."
A press release from Paxton's office further elaborates on the victory, stating that the federal district court's decision to deny the asset managers' motion to dismiss allows the litigation to proceed under both Texas and federal antitrust laws, as well as Texas's consumer protection laws.
Paxton emphasized the significance of this development, stating, "BlackRock, State Street, and Vanguardthree of the most powerful financial corporations in the worldcreated an investment cartel to illegally control national energy markets and squeeze more money out of hardworking Americans. Todays victory represents a major step in holding them accountable. I will continue fighting to protect Texas and defend Americas energy independence from this unlawful conspiracy."
The lawsuit, initiated by Paxton in November 2024, accuses the asset managers of exploiting their influence over the coal market to coerce coal companies into aligning with "green energy" objectives, aiming to cut coal output by half by 2030. This intentional reduction in supply has led to increased prices, enabling these investment firms to reap substantial profits by driving up electricity costs for American households.
The lawsuit claims that their actions violate numerous state and federal laws prohibiting anticompetitive behavior and deceptive trade practices. In a show of support, the Trump Administration took legal action in May 2025 to bolster Paxton's efforts to hold these asset managers accountable.
This ruling marks a pivotal moment in the ongoing legal battle, as it underscores the potential consequences of unchecked corporate influence in the energy sector. The case continues to unfold, with implications for the future of energy policy and market regulation in the United States.
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