BlackRock , Vanguard and State Street have been sued by Texas and 10 other Republican-led states, which said the large asset managers violated antitrust law through climate activism that reduced coal production and boosted energy prices.

Vanguard, and State Street Corp (STT) have been sued by a group of states led by Texas for allegedly breaking antitrust law. These companies are accused of boosting electricity prices through their investments.

Inc., Vanguard Group Inc., and State Street Corp. were sued by a group of states led by Texas for allegedly breaking antitrust law by boosting electricity prices through their investments, in the highest-profile lawsuit yet against the beleaguered ESG industry.

The 11 states, led by Texas, allege the asset managers have been undercutting coal companies and driving up electricity prices.

Federal complaint filed in Texas court by a consortium of 11 states argues the fund giants used their market power to pressure energy companies and ultimately hurt consumers.

BlackRock, State Street and Vanguard own substantial shares in American coal companies. The AGs claim they conspired to force a reduction in coal supply.

Texas Attorney General Ken Paxton and 10 other AGs accused BlackRock, Vanguard and State Street of violating antitrust laws by promoting environmental, social and governance goals. The companies are some of the largest investors in U.S. coal production and allegedly pose a threat to competition within the energy industry.

Texas and 10 other Republican-led states sued institutional investors Blackrock, State Street and Vanguard on Wednesday, accusing them of violating antitrust law through climate activism that the states say led to diminished coal production.

BlackRock, State Street and Vanguard have been sued by Texas and 10 other Republican-led states, which said the large asset managers violated antitrust law through climate activism that resulted in reduced coal production and higher energy prices.