### Attorney General Ken Paxton Sues Major Investment Firms Over Alleged Market Manipulation

In a landmark legal move, Attorney General Ken Paxton has filed a lawsuit against BlackRock, State Street Corporation, and Vanguard Group—three of the world's leading institutional investors—accusing them of unlawfully conspiring to manipulate energy markets. The allegations center on claims that these firms used anticompetitive trade practices to restrict the coal market, ultimately driving up electricity costs for consumers.

According to the lawsuit, the three asset managers amassed significant stockholdings in major publicly traded coal companies in the United States. This ownership gave them substantial influence over the policies of these coal producers. In 2021, the firms allegedly used this power to push a green energy agenda by committing to reduce coal output by more than half by 2030. This effort was part of broader initiatives like the Climate Action 100 and the Net Zero Asset Managers Initiative.

Paxton contends that by signaling their collective intent to decrease thermal coal production, the firms effectively manipulated the energy market. This planned reduction in coal output has led to increased electricity prices nationwide. Furthermore, the lawsuit claims that these companies misled thousands of investors who had chosen to invest in non-ESG (Environmental, Social, and Governance) funds, with the expectation of maximizing profits. Despite these representations, the funds allegedly pursued ESG strategies.

The lawsuit asserts that the deliberate and artificial restriction of supply allowed these investment firms to achieve extraordinary revenue gains, violating multiple federal laws designed to prevent an undue reduction in market competition or other anticompetitive practices. Additionally, the companies are accused of breaching Texas antitrust and deceptive trade practices laws.

"Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized 'environmental' agenda," stated Attorney General Paxton. He characterized the actions of BlackRock, Vanguard, and State Street as a concerted effort to control the coal market, reduce energy supply, and inflate prices, harming American energy production and consumers in the process. Paxton labeled these actions as "a stunning violation of state and federal law."

The lawsuit has garnered support from a coalition of ten other states. The Buzbee Law Firm and Cooper & Kirk are serving as outside counsel in this high-profile case.