**GOP Attorneys General Sue Major Investment Firms Over Environmental Policies**

WASHINGTON (TNND) - A coalition of Republican attorneys general has filed a lawsuit targeting three leading U.S. investment firms, alleging that their focus on environmental goals contravenes antitrust laws. Texas Attorney General Ken Paxton, along with counterparts from 10 other states, have accused BlackRock, Vanguard, and State Street of manipulating the coal market in a way that undermines competition within the energy sector.

According to the complaint, the firms’ actions have led to an uptick in coal and energy prices. "As demand for the electricity Americans need to heat their homes and power their businesses has gone up, the supply of the coal used to generate that electricity has been artificially depressed--and the price has skyrocketed," the lawsuit details. The complaint alleges that by promoting environmental, social, and governance (ESG) goals, these firms have caused economic harm to consumers, resulting in higher utility bills and overall costs.

The 109-page lawsuit outlines seven distinct violations and seeks $10,000 per violation in addition to other penalties. "Texas will not tolerate the illegal weaponization of the financial industry in service of a destructive, politicized 'environmental' agenda," Paxton stated via X. He further claimed that BlackRock, Vanguard, and State Street "formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices," thus violating both state and federal laws.

In response, BlackRock defended its practices, claiming adherence to federal regulations. "BlackRock's holdings in energy companies are regularly reviewed by federal and state regulators," a company spokesperson said. "We make these investments on behalf of our clients, and our focus is on delivering them financial returns. The suggestion that BlackRock has invested money in companies with the goal of harming those companies is baseless and defies common sense."

A representative from State Street reiterated that their actions align with long-term financial interests. "State Street acts in the long-term financial interests of investors with a focus on enhancing shareholder value. As long-term capital providers, we have a mutual interest in the long-term success of our portfolio companies," the spokesperson noted.

This lawsuit coincides with President-elect Donald Trump's nomination of Liberty Energy CEO Chris Wright to head the Department of Energy. Wright, alongside Trump's pick for the Department of the Interior, North Dakota Gov. Doug Burgum, will be responsible for advancing U.S. energy policies.