Judge Upholds Climate Antitrust Case vs. Top Asset Giants

Judge Dismisses Request to Drop Antitrust Lawsuit Against Top Asset Managers on Climate Activism

On Friday, a U.S. District Judge rejected a request to dismiss the case brought against BlackRock, State Street, and Vanguard by Texas and 12 other Republican-led states alleging antitrust violations for joining Climate Action 100+ and using shareholder advocacy to promote the organization’s goals. The Judge did strike down 3 of 21 counts against the companies.

Praise from Texas:

Attorney General Ken Paxton stated the asset managers have “created an investment cartel to illegally control national energy markets and squeeze more money out of hardworking Americans. Today’s victory represents a major step in holding them accountable.”

Defendants response:

Meanwhile, the asset managers have called the ruling “disappointing” and a “risk to investors and energy markets.” BlackRock responded to the suing states proposed “remedy” to divest holdings in coal companies, stating forced divestment “undermin[es] the Trump Administration’s goal of American energy independence.”

What We Are Watching This Week

The Senate is now on summer recess and will not reconvene until September. While movement in Congress is on pause, our team is keeping a close eye on the states and regulatory agencies, such as the Environmental Protection Agency (EPA) and its public hearing on August 19 and 20 on the proposed rule to rescind the 2009 Endangerment Finding.