Eleven states, led by Texas, have launched a lawsuit against BlackRock, Vanguard and State Street, accusing them of manipulating the coal market to serve a green energy agenda. The lawsuit, filed in Texas federal court, alleges the firms violated federal and state antitrust laws.

The companies, which collectively manage over $26 trillion in assets, are accused of using their stakes in coal producers to pressure these companies into cutting output. This alleged strategy has reduced energy supply, driven up utility prices and harmed consumers nationwide.

Texas Attorney General Ken Paxton claims the firms prioritized ESG policies over free-market principles. “These companies weaponized their investments to suppress coal production, leaving American families to foot the bill,” he said.

Programs like Climate Action 100 and Net Zero Asset Managers Initiative were cited in the complaint as tools used to coordinate these efforts. The lawsuit also alleges that the companies misled investors who were led to believe their funds were not influenced by ESG strategies.

The states involved in the suit are seeking civil penalties, including $10,000 per violation, as well as an injunction to prevent further anticompetitive practices. The action highlights growing resistance to ESG initiatives that critics argue undermine energy independence.

This case follows a series of legal and legislative efforts by states to challenge the influence of ESG policies on the energy sector, signaling an intensifying battle over the future of American energy production.