BlackRock, other fund managers lose bid to dismiss Texas climate collusion lawsuit
U.S. District Judge Jeremy Kernodle in Tyler, Texas agreed to dismiss just three of the 21 counts in the states' lawsuit, which also names institutional investors State Street (STT.N), opens new tab and Vanguard.
The lawsuit is among the highest-profile cases targeting efforts to promote environmental, social and governance goals.
Texas Attorney General Ken Paxton said the three companies "created an investment cartel to illegally control national energy markets and squeeze more money out of hardworking Americans,' and that 'today's victory represents a major step in holding them accountable."
The three asset managers said they would continue to defend against the claims, with Vanguard calling the ruling disappointing, and State Street calling the case a risk to investors and energy markets.
"By pursuing forced divestment, the Attorneys General are undermining the Trump Administration's goal of American energy independence," BlackRock said.
The ruling by Kernodle, who was appointed by President Donald Trump, means the states can move forward with their claims that the asset managers violated U.S. antitrust law by joining Climate Action 100+, an investor initiative to take action to combat climate change, and used their shareholder advocacy in furtherance of its goals.
Kernodle, however, dismissed claims that the asset managers violated Louisiana and Nebraska consumer protection laws.
The companies have denied wrongdoing and called the case "half-baked." But the states' theories have garnered support from Trump-appointed antitrust enforcers at the U.S. Department of Justice and Federal Trade Commission.
The outcome of the lawsuit could have major implications for how the companies, which together manage some $27 trillion, approach their holdings and passive funds.
One possible remedy sought by the plaintiffs would be for the fund firms to divest holdings in coal companies, which BlackRock has said would harm the companies' access to capital and likely raise energy prices.
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After he finished high school he started taking classes at a local college while also working a job at Dunkin Donuts, which meant waking up in the early hours of the morning to make sure he had time for both. 'The coffee shop I worked at was all the way in north Las Vegas and I had the opening shift which started at 6am. 'So I would wake up at 3.30am to get ready for work, catch the bus at 4.15/4.30am, and arrive on the other side of town for my shift to start at 6,' he remembered. 'While I was working at this coffee shop, I was taking 15 credits at UNLV and also teaching myself how to code. 'I would get off at 1pm, go across the street to another coffee shop with Wi-Fi, and learn how to code building side projects and apply to entry level programming positions.' Any free time he had was spent watching YouTube videos or reading articles on coding, and 'applying to entry level programming positions.' 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