Three of the world’s top asset managers, BlackRock (BLK), Vanguard, and State Street (STT), have asked a Texas court to dismiss an antitrust lawsuit that accuses them of working together to hurt the coal industry. The lawsuit, filed by Texas and 10 other Republican-led states, claims these firms pushed coal companies to cut production as part of their environmental, social, and governance (ESG) policies, leading to higher energy prices.
Firms Defend Their Investment Decisions
In their request to dismiss the case, the asset managers called the claims “half-baked and untested” legal ideas. They insist they never told coal companies to cut production and deny any illegal coordination. They argue that discussing climate risks with companies is common practice and does not break antitrust laws.
They also stress that their ESG strategies help lower risks and boost long-term gains for investors. The firms claim that if the lawsuit moves forward, it could hurt both coal companies and individual investors.
Asset Managers Face Ongoing Legal Challenges Over ESG Policies
This is not the first time major asset managers have faced legal trouble over ESG. In November 2024, state attorneys general sued all three firms, claiming they pressured coal companies to cut output.
Meanwhile, the Net Zero Asset Managers (NZAM) alliance, which works toward net-zero emissions by 2050, recently halted its efforts. This move came amid rising political and regulatory pressure, especially in the U.S. As a result, major firms like BlackRock left the group, pointing to growing opposition to net-zero policies.
Is BLK Stock a Buy?
The stock of BlackRock has a consensus Strong Buy rating among 15 Wall Street analysts. That rating is based on 13 Buy and two Hold recommendations issued in the last three months. There are no Sell ratings on the stock. The average BLK price target if $1,179.54 implies 23.13% upside from current levels. Notably, BLK stock has gained 22% over the past year.
Questions or Comments about the article? Write to editor@tipranks.com