BlackRock, the largest asset manager globally, has expressed concerns that government support for a lawsuit claiming that major asset managers have conspired to hinder competition in the coal industry could jeopardize U.S. energy independence. The lawsuit, initiated by Texas and twelve other states, targets BlackRock, as well as significant investors Vanguard and State Street Global Advisors (SSGA), alleging that these companies used their considerable stakes in U.S. coal firms to stifle competition.
In a recent statement, BlackRock criticized the support given by the U.S. Department of Justice (DOJ) and the Federal Trade Commission (FTC) to what it describes as a “baseless” case. The firm asserted that this lawsuit undermines the objectives set during the Trump Administration for achieving American energy independence.
BlackRock emphasized that the legal action attempts to distort antitrust laws by positing an unfounded theory that coal firms colluded with their shareholders to decrease coal production. They warned that forcing asset managers to divest from coal investments could hinder access to capital for these companies, ultimately leading to increased energy prices.
Similarly, SSGA characterized the lawsuit as “baseless” and expressed eagerness to present facts through the legal proceedings. The firm maintained that the ongoing legal developments do not alter its view of the situation.
Vanguard also voiced its concerns regarding certain legal interpretations promoted by the agencies. However, it acknowledged the agencies’ support for passive fund investing and shareholder advocacy for enhanced corporate governance, asserting that their practices remain compliant with these standards.
The responses from the asset management firms highlight the ongoing contention surrounding competition in the coal sector and the broader implications for energy independence in the United States.