Asset Managers Face Legal Battle Over Climate Activism and Antitrust Claims
A U.S. judge has allowed a lawsuit filed by Texas and 12 other Republican-led states against top asset managers, including BlackRock, to proceed. The lawsuit alleges antitrust violations due to climate activism efforts that reduced coal production and increased energy prices. The case could have significant implications for asset management practices.
A U.S. judge in Texas has largely turned down a request by major asset managers, including BlackRock, to dismiss a lawsuit filed by Texas and 12 other Republican-led states. The lawsuit claims these companies violated antitrust laws through climate activism that curbed coal production and heightened energy prices.
U.S. District Judge Jeremy Kernodle dismissed only three of the 21 counts. The legal move is one of the most high-profile cases targeting environmental, social, and governance goals. State Street denounced the lawsuit as baseless, while Vanguard and BlackRock have yet to comment.
The decision allows the states to continue pursuing claims against the asset managers for allegedly breaking U.S. antitrust laws by participating in Climate Action 100+. The outcome could significantly impact how these firms handle their substantial $27 trillion in investments.
(With inputs from agencies.)
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