Cision PR Newswire

AUSTIN, Nov. 27, 2024 /PRNewswire/ -- Tony Buzbee, principal of The Buzbee Law Firm, announced today that, on behalf of Attorney General Ken Paxton of the State of Texas, a monumental lawsuit was filed against BlackRock, State Street Corporation, and Vanguard Group—three of the largest institutional investors in the world—for conspiring to artificially constrict the coal market through anti-competitive trade practices. The total recovery in the case could amount to billions of dollars.

The lawsuit was filed in United States District Court, Eastern District of Texas, Tyler Division. According to the filing, over several years, the named defendants acquired substantial stockholdings in every significant publicly held coal producer in the United States, thereby gaining the power to control the internal policies of the coal companies. Using their combined influence over the coal market, the investment cartel collectively pressured the coal companies to accommodate "green energy" goals, pushing to reduce coal output by more than half by 2030.

The lawsuit also details how defendants Blackrock, Vanguard, and State Street allegedly utilized the Climate Action 100 and the Net Zero Asset Managers Initiative to signal their mutual intent to reduce the output of thermal coal, which predictably increased the cost of electricity for Americans across the United States. 

According to the pleadings, the defendants also deceived thousands of investors who elected to invest in non-ESG funds to maximize their profits. Yet these funds pursued ESG strategies notwithstanding the defendants' representations to the contrary.

As set forth in the Complaint, the defendants' efforts to deliberately and artificially constrict coal supply increased prices and thus enabled the defendants to recognize extraordinary revenue gains. The Complaint brings claims for conspiracy to violate multiple federal laws that prevent a group of shareholders from using their shares to lessen competition or engaging in other anti-competitive schemes. 

According to Tony Buzbee, who is acting as outside lead counsel: "This is a landmark anti-trust case. The total recovery in this case could amount to billions of dollars. I am proud to stand with Attorney General Paxton on behalf of the State of Texas to right this injustice and to seek relief for the citizens of the great State of Texas. Texans can't and won't tolerate this type of conduct any further."

The Buzbee Law Firm is headquartered on the 75th floor of JP Morgan Chase Tower in Houston, Texas. Tony Buzbee has been described by the New York Times as "one of the most successful trial lawyers in the United States." Mr. Buzbee has served as lead counsel in some of the largest and most important cases in United States history.

For more information or comment: tbuzbee@txattorneys.com; www.txattorneys.com

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SOURCE The Buzbee Law Firm