Texas Attorney General Ken Paxton announced Friday that the Trump Administration’s Department of Justice (“DOJ”) and Federal Trade Commission (“FTC”) have taken legal action supporting his lawsuit against BlackRock, State Street, and Vanguard for conspiring to artificially manipulate the coal market through anticompetitive trade practices, according to a news release.
“I am grateful that the Trump Administration has joined my effort to hold major asset managers accountable for weaponizing the financial industry to illegally control the energy markets and force a destructive ‘green energy’ ideology on the American people,” Paxton said. “The joint conspiracy by BlackRock, State Street, and Vanguard sought to undermine America’s energy independence at the expense of consumers and our national sovereignty. Together, President Donald Trump and I will hold these corporations accountable.”
The release stated:
In November 2024, Attorney General Paxton sued the asset managers for using their combined influence over the coal market to weaponize their shares to pressure the coal companies to accommodate “green energy” goals by halving coal output by 2030. The deliberate and artificial supply reduction increased prices and enabled the investment companies to produce extraordinary revenue gains by increasing the cost of electricity for American households. Their conspiracy violated multiple state and federal laws forbidding anticompetitive schemes and deceptive trade practices.
In Paxton's November 109-page lawsuit against "three of the largest institutional investors in the world", he alledged: "Over several years, the three asset managers acquired substantial stockholdings in every significant publicly held coal producer in the United States, thereby gaining the power to control the policies of the coal companies. Using their combined influence over the coal market, the investment cartel collectively announced in 2021 their commitment to weaponize their shares to pressure the coal companies to accommodate 'green energy' goals."
Paxton stated in a news release in November that "the companies broke Texas antitrust and deceptive trade practices laws."
Ten other Attorneys General joined the lawsuit including Arkansas Attorney General Tim Griffin.
In a news release from the Federal Trade Commission, Andrew Ferguson, FTC Chairman, said, "President Donald Trump understands the importance of coal for our energy security and has vowed to fight left-wing ideologues who seek to make us weaker and poorer under the guise of ESG. Today, the Federal Trade Commission carries out this administration’s mission to unleash American energy dominance, protect coal, and stop the left’s attempt to corrupt financial markets with political and social objectives,” said . “These companies allegedly blocked the production of American coal in the name of climate change scaremongering, all so they could take money out of the pockets of American consumers and put it in theirs.”
