AUSTIN (KXAN) — Texas is suing three huge investment firms claiming the companies violated anti-trust laws making you have to pay more for power. The suit claims it happened through climate activism, which in turn reduced coal production and made energy prices soar.
Texas is one of 10 states suing Black Rock, Vanguard and State Street.
“This is a federal anti-trust case. These things are complicated,” University of Texas law professor Randy Erben said.
Paxton joined 10 other attorneys general to sue three of the largest investors in the world. At stake, the suit claims, is by controlling the supply of coal they caused fuel prices to rise.
“The allegation is they have pushed green energy policies, which would reduce the production of coal,” Erben explained.
The suit also claims “these firms deceived thousands of investors in non-environmental, social and governance funds to maximize their profits.”
“You have three very powerful investment houses who are going to be very well represented by very good lawyers,” Erben said.
Erben also notes this is something that will take a long time to move through the courts.
“It’s probably going to take several years to get final resolution unless they reach a settlment,” he said.
In a statement, Black Rock said in part “The suggestion Black Rock has invested money in companies with the goal of harming those companies is baseless and defies common sense. This lawsuit undermines Texas’ pro-business reputation and discourages investments in companies consumers rely upon.”
“For the average consumer, will this change their electric bill overnight? Probably not. It just depends on the resolution of this case,” Erben said.
A slow-moving process that could be years away from a solution.
KXAN also reached out to Vanguard and State Street for a request for comment. The companies have not responded. This story will be updated if they do.
You can read the full lawsuit here.