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

The US Department of Justice has entered the legal fray surrounding one of the most significant antitrust cases targeting institutional investors in recent memory. The DOJ filed a statement of interest in State of Texas et al. v. BlackRock, Inc. et al., backing antitrust claims against BlackRock, State Street, and Vanguard over their alleged coordination to suppress coal production through ESG initiatives. What Texas is actually alleging The lawsuit was originally filed in November 2024 by Texas and 12 other states. The core allegation is straightforward, even if the mechanics are complex: BlackRock, State Street, and Vanguard collectively hold significant ownership stakes in competing US coal producers, firms that together account for nearly half of American coal output. Rather than letting those coal companies compete freely, the states argue, these asset managers used their outsized influence to coordinate production cuts through ESG-related engagement. The complaint points to an 18-29% decline in coal production and 21-25% price increases between 2019 and 2022 as evidence of the alleged anti-competitive behavior. The legal theory draws on both the Clayton Act and the Sherman Ac...