JEFFERSON CITY – Missouri Attorney General Andrew Bailey announced he has joined a coalition of 11 states in filing a lawsuit against three of the world’s largest investment firms—BlackRock, State Street Corporation and Vanguard Group.
The lawsuit alleges the firms used illegal and anticompetitive practices to restrict the coal market and artificially drive up energy prices.
"I will not stand idly by while major companies unlawfully hamper energy production and raise prices for Missouri consumers," Bailey said in a statement. "My office will always protect consumers from those weaponizing industries to satisfy their radical agenda."
The lawsuit claims that BlackRock, Vanguard and State Street collectively acquired significant stockholdings in every major publicly held coal producer in the United States, enabling them to influence and control the policies of these companies.
The firms allegedly used this power to advance environmental, social, and governance (ESG) goals, including a drastic reduction in coal production.
According to the lawsuit, the firms pushed coal companies to cut output by over 50% by 2030, a move that has reportedly driven up electricity prices across the nation.
The states argue that the defendants utilized initiatives such as Climate Action 100 and the Net Zero Asset Managers Initiative to coordinate their actions.
These organizations allegedly facilitated a concerted effort to reduce coal supply, in violation of federal antitrust laws.
The lawsuit contends that the firms’ actions constitute a conspiracy to artificially constrain supply, increase prices and generate extraordinary profits for themselves.
The attorneys general assert that this scheme violated Section 7 of the Clayton Act, which prohibits acquisitions that substantially lessen competition, and Section 1 of the Sherman Act, which outlaws anticompetitive agreements.
The lawsuit further alleges that the firms misled investors by pursuing ESG strategies in funds marketed as non-ESG, thereby breaching fiduciary duties.
Over the past four years, coal producers in the United States have reportedly adjusted production not based on market demand but on the directives of asset managers like BlackRock.
This artificial suppression of supply has coincided with rising coal prices, leading to higher utility bills for consumers.
While smaller, privately held coal producers have attempted to meet increased demand, they have been constrained by limited reserves, production capacity, and a lack of financing—issues compounded by the alleged influence of the defendants on financial institutions.
The lawsuit highlights the immense market power of the defendants, with the three firms collectively holding significant ownership stakes in leading coal companies, including Peabody Energy and Arch Resources.
For example, BlackRock alone owns over 30% of Peabody Energy and 34% of Arch Resources, two of the largest coal producers in the U.S.
This level of influence allegedly enabled the firms to pressure management to reduce coal output, a strategy the lawsuit describes as creating “cartel-level profits” at the expense of consumers and competition.
The coalition’s legal action seeks to halt the alleged anticompetitive practices, restore competition in coal markets, and secure damages, restitution, and civil penalties.
Alongside Missouri, the lawsuit includes attorneys general from Alabama, Arkansas, Indiana, Iowa, Kansas, Montana, Nebraska, Texas, West Virginia and Wyoming.
"The American consumer is entitled to the benefits of free markets and vigorous competition," the lawsuit states. "Competitive markets—not the dictates of far-flung asset managers—should determine the price Americans pay for electricity."
U.S. District Court for the Eastern District of Texas case number: 6:24-cv-00437