The US Department of Justice filed a statement of interest on May 22, 2025, in State of Texas et al. v. BlackRock, Inc. et al., supporting antitrust claims that BlackRock, State Street, and Vanguard coordinated coal production cuts through ESG initiatives. Texas and twelve other states filed the lawsuit in November 2024, alleging that these three asset managers, which collectively hold stakes in firms accounting for nearly half of US coal output, used their outsized influence to coordinate production cuts. The complaint cites an 18-29% decline in coal production and 21-25% price increases between 2019 and 2022. Vanguard settled on February 26, 2026, agreeing to pay $29.5 million and implement proxy-voting reforms, while BlackRock and State Street remain as defendants. If the case sets a precedent that ESG-motivated engagement by common owners can constitute antitrust coordination, it could force asset managers to fundamentally rethink how they interact with competing companies in their portfolios.
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