U.S. Judge Allows Antitrust Lawsuit Against Top Asset Managers to Proceed
A U.S. judge largely denied a request to dismiss a lawsuit by Texas and 12 Republican-led states against BlackRock, State Street, and Vanguard. The case alleges antitrust violations through climate activism that affected coal production and energy prices. The outcome could impact asset management practices significantly.
A U.S. District Court in Texas has denied a move to dismiss a major antitrust lawsuit against asset managers BlackRock, State Street, and Vanguard, allowing it to largely proceed. Filed by Texas and 12 other Republican-led states, the case accuses the companies of colluding to limit coal production and influence energy prices through climate activism.
The states argue that these corporations formed an 'investment cartel' to control the energy market, undermining efforts for American energy independence. The lawsuit takes aim at the companies' participation in Climate Action 100+, highlighting potential violations of U.S. antitrust law.
The ruling, issued by Trump-appointed Judge Jeremy Kernodle, allows most of the case to move forward, potentially altering how these financial giants, managing around $27 trillion in assets, interact with their holdings. The decision not only impacts legal proceedings but could also reshape future investment strategies of large asset managers across the nation.
(With inputs from agencies.)
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