(Reuters) -Texas and 10 other Republican-led states sued institutional investors Blackrock (NYSE:BLK), State Street (NYSE:STT) and Vanguard on Wednesday, accusing them of violating antitrust law through climate activism that the states say led to diminished coal production.
The lawsuit filed in Tyler, Texas, takes aim at the three fund managers’ membership in the Net Zero Asset Managers Initiative, which Vanguard has since left, and BlackRock and State Street’s involvement in Climate Action (WA:ACT) 100+, from which they have since withdrawn.
The lawsuit also alleges the investors used their holdings in coal companies to pressure them to reduce output.
Republicans have long contemplated using U.S. antitrust laws against what they see as collusion among large fund managers to enact climate-related goals.
