The US Justice Department and Federal Trade Commission have backed a case brought by 13 Republican states against asset managers BlackRock, Vanguard, and State Street, alleging they conspired to reduce coal output through climate activism.
The agencies filed a statement of interest in the case, urging the judge to reject several arguments made by the asset managers. They argued that the conduct in question is prohibited under antitrust laws and should not be exempted as passive investors.
BlackRock claimed forcing divestment from coal companies would harm their access to capital and raise energy prices. State Street denied the lawsuit’s claims, stating it acts in the long-term interests of its investors. Vanguard defended its history of safeguarding returns for investors.
The case marks a setback for BlackRock, Vanguard, and State Street, which together control $27 trillion in assets. Conservative Republicans have accused them of prioritizing environmental concerns over maximizing returns for their customers. The companies have called the lawsuit “half-baked” with no evidence to support the claims.
Source: https://nypost.com/2025/05/22/business/feds-back-gop-states-in-climate-case-against-blackrock-fund-giants