US Department of Justice weighs joining Texas antitrust case against BlackRock and State Street

The US Department of Justice has expressed interest in joining an antitrust lawsuit filed by Texas and 12 other states against major asset managers BlackRock, State Street, and Vanguard.

The litigation alleges that these firms coordinated to suppress coal production through ESG-related engagement. The states argue that because these three companies hold significant ownership stakes in competing US coal producers—accounting for nearly half of American coal output—they used their influence to facilitate production cuts rather than allowing free competition. The complaint cites an 18-29% decline in coal production and price increases between 2019 and 2022 as evidence of anti-competitive behavior.

While Vanguard has already settled by agreeing to proxy-voting reforms and a $29.5 million payment, BlackRock and State Street remain defendants in the ongoing case. Federal Judge Jeremy D. Kernodle recently allowed the antitrust claims to proceed to the discovery phase.