Show-Me State Times

Missouri Attorney General Andrew Bailey has announced that he is joining a coalition of 11 states in a lawsuit against BlackRock, State Street Corporation, and Vanguard Group. The lawsuit accuses these major international investors of employing illegal and anticompetitive practices to restrict the coal market.

Attorney General Bailey stated, "I will not stand idly by while major companies unlawfully hamper energy production and raise prices for Missouri consumers." He emphasized his commitment to protecting consumers from industries being used to fulfill what he described as a "radical agenda."

The suit claims that over several years, these asset managers acquired significant stockholdings in all major publicly held coal producers in the United States. This acquisition allegedly allowed them to control the policies of these companies. In 2021, the investment group reportedly declared their intention to use their shares to pressure coal companies into adopting "green energy" goals. Their strategy included reducing coal output by more than half by 2030.

The firms are said to have utilized initiatives like Climate Action 100 and the Net Zero Asset Managers Initiative to signal their collective intent to decrease thermal coal output. This move is alleged to have increased electricity costs across the United States.

Additionally, it is claimed that these companies misled thousands of investors who chose non-ESG funds aiming for profit maximization but were instead subjected to ESG strategies contrary to what was represented.

The attorneys general involved assert that this deliberate constriction of supply led to price increases, resulting in extraordinary revenue gains for the firms. They argue this conspiracy violated multiple federal laws designed to prevent shareholders from lessening competition or engaging in anticompetitive activities.

Apart from Missouri, the states participating in this legal action include Alabama, Arkansas, Indiana, Iowa, Kansas, Montana, Nebraska, Texas, West Virginia, and Wyoming.