The US Department of Justice has formally intervened in an antitrust lawsuit against BlackRock and State Street. The case, originally initiated in November 2024 by Texas and 12 other states, alleges that these asset managers coordinated to suppress coal production through ESG initiatives.
Plaintiffs claim that the defendants, who hold significant stakes in companies producing nearly half of US coal, used their influence to limit competition. Data cited in the complaint indicates a 18-29% decline in coal production and 21-25% price increases between 2019 and 2022.
The legal action relies on the Clayton Act and the Sherman Act. On May 22, 2025, the DOJ and FTC filed a joint statement of interest. Federal Judge Jeremy D. Kernodle denied most motions to dismiss on August 1, 2025, allowing the case to proceed to discovery.
Vanguard, initially a defendant, reached a settlement on February 26, 2026. The firm agreed to implement proxy-voting reforms and pay $29.5 million. BlackRock and State Street remain defendants in the ongoing litigation regarding their common ownership practices.
