Larry Fink's BlackRock loses bid to dismiss Texas climate collusion claims
US District Judge Jeremy Kernodle in Tyler, Texas, agreed to dismiss just three of the 21 counts in the states' lawsuit, that also names institutional investors State Street and Vanguard.
The lawsuit is among the highest-profile cases targeting efforts to promote environmental, social and governance goals.
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Texas and 12 other Republican-led states accused BlackRock, State Street and Vanguard of violating antitrust law through climate activism that reduced coal production and boosted energy prices. BlackRock CEO Larry Fink, above.
AP
Representatives for the companies did not immediately respond to requests for comment.
The ruling by Kernodle, who was appointed by President Trump, means the states can move forward with their claims that the asset managers violated US 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.
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The companies have denied wrongdoing and called the case 'half-baked.' But the states' theories garnered support from Trump-appointed antitrust enforcers at the 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.
AP
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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