AUSTIN (KXAN) — The state of Texas is suing three giant investment companies for violating antitrust laws that force them to pay more for their electricity. The lawsuit alleges that this was caused by climate change activities, which resulted in reduced coal production and higher energy prices.
Texas is one of 10 states suing BlackRock, Vanguard, and State Street.
Paxton sues TikTok for violating scope law
“This is a federal antitrust case. These are complex cases,” said Randy Erben, a law professor at the University of Texas.
Paxton, along with 10 other attorneys general, sued three of the world’s largest investors. The problem, the lawsuit alleges, is that by controlling the supply of coal, it caused fuel prices to rise.
“The argument is that we promoted green energy policies that reduced coal production,” Erben explained.
The lawsuit also alleges that “these companies defrauded thousands of investors in non-environmental, social, and governance funds in order to maximize profits.”
Ken Paxton’s evasive relationship with the press
“There are three very strong investment companies that will be very well represented by very good lawyers,” Erben said.
Erben also points out that this is something that takes a long time to get through the courts.
“Unless a settlement is reached, a final resolution will likely take several years,” he said.
BlackRock said in a statement, in part, “Any suggestion that BlackRock invested money in companies with the intent to harm them is unfounded and contrary to common sense.” The lawsuit damages Texas’ pro-business reputation and discourages investment in the companies consumers rely on. ”
A statement from State Street said the lawsuit was “without merit and we look forward to presenting the facts through the legal process.”
“State Street is focused on increasing shareholder value and acts in the long-term economic interest of our investors. As a provider of long-term capital, we are committed to mutually contributing to the long-term success of our portfolio companies. ,” the statement reads in part.
A slow process that can take years to resolve.
“Will this change the price of electricity overnight for the average consumer? Probably not. That depends on the resolution of this case,” Erben said.
Judge rejects Paxton’s effort to shut down El Paso immigrant shelter
KXAN also reached out to Vanguard for comment. The company has not responded. This story will be updated if a response is received.
You can read the full lawsuit here.
