Major energy producers Texas and West Virginia are leading nine other states in an antitrust lawsuit against BlackRock, State Street and Vanguard, alleging they leveraged their voting shares to facilitate an "output reduction scheme, which has artificially constrained the supply of coal…" The investment titans allegedly "significantly diminished competition in the markets for coal, increased energy prices for American consumers, and produced cartel-level profits for ,"...
Each defendant has individually acquired substantial stockholdings in every significant publicly held coal producer in the United States. Each has thereby acquired the power to influence the policies of these competing companies and bring about a substantial lessening of competition in the markets for coal. And each has used its power to affect a substantial reduction in competition in coal markets.
The filing included a chart of the three firms' collective stake in top coal-related companies, with a 30% stake in Peabody Energy being the largest. The top law enforcement officer and governor-elect of the nation’s most prominent coal-producing state said the suit’s allegations reveal the use of the companies’ investment might to push a green climate agenda and force people to fall in line ideologically.
BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices. Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of state and federal law." "Americans think that when they entrust their hard-earned savings to Wall Street firms, those firms will seek profits, not radical environmental goals," added Alabama Attorney General Steve Marshall.