Attorney General Ken Paxton (R) announced a major legal victory in his lawsuit against asset management giants BlackRock, State Street, and Vanguard, accusing them of conspiring to manipulate the coal market and drive-up energy costs for Americans.
A federal district court judge denied the firms’ motion to dismiss the case, allowing the case to move forward under both Texas and federal antitrust statutes, as well as state consumer protection laws.
“BlackRock, State Street, and Vanguard – three of the most powerful financial corporations in the world – created an investment cartel to illegally control national energy markets and squeeze more money out of hardworking Americans,” Attorney General Paxton said in a statement. “Today’s victory represents a major step in holding them accountable. I will continue fighting to protect Texas and defend America’s energy independence from this unlawful conspiracy.”
The attorney general originally filed suit in November 2024, alleging that the companies coordinated to pressure coal producers into cutting output in half by 2030 to meet “green energy” targets.
According to the complaint, this intentional supply reduction drove up coal prices, which in turn increased the cost of electricity nationwide. The lawsuit then argues that the firms’ actions enabled them to reap “extraordinary revenue gains” at the expense of American households.
Attorney General Paxton’s office contends that such collusion violates multiple laws prohibiting anticompetitive conduct and deceptive trade practices. In May 2025, the Trump Administration formally joined the legal effort, filing its own action in support of Texas’s claims.
“The joint conspiracy by BlackRock, State Street, and Vanguard sought to undermine America’s energy independence at the expense of consumers and our national sovereignty,” the attorney general commented that the time. “Together, President Donald Trump and I will hold these corporations accountable.”
Attorney General Paxton emphasized that the case is not just about market fairness, but about protecting the state’s economic stability.
In a statement, BlackRock dismissed Attorney General Paxton's lawsuit, claiming that "this case is based on an absurd theory that coal companies conspired with their shareholders to reduce coal production." "This case is not supported by the facts, and we will demonstrate that," they added.
"By pursuing forced divestment, the Attorneys General are undermining the Trump Administration’s goal of American energy independence. Forcing divestment will harm coal companies’ ability to access capital and invest in their businesses and jobs, likely leading to higher energy prices for Americans."
