Wyoming Leads Lawsuit Against Blackrock, State Street, and Vanguard Over Coal Production Cuts

Wyoming and 10 other states are suing three major investors—Blackrock, State Street, and Vanguard—accusing them of using their power as large stockholders to push coal companies to reduce production. The goal, the lawsuit claims, is to reach net-zero carbon emissions, which is part of a broader climate agenda.

However, the states argue this move is hurting competition in the coal industry, raising energy prices for consumers, and creating a monopoly in the market.

These investors, which hold significant shares in coal companies like Peabody Energy and Arch Resources, have pressured these companies to cut production and focus on reducing carbon emissions. This has led to a decrease in coal supply, increasing energy costs and allowing these investors to profit, according to the lawsuit.

The states are asking the court to declare that the investors violated antitrust laws and to stop them from continuing to influence coal production in this way.

The lawsuit also highlights how coal production at major companies has dropped significantly, but revenues and profits for those companies have increased, suggesting that the reduced supply has led to higher prices and bigger profits. The states argue that the investors are creating a cartel, controlling coal production for their benefit.

The states also focus on coal from the South Powder River Basin in Wyoming, which is cheap and cleaner than many other types of coal.

The lawsuit claims that as coal prices rise due to reduced production, energy companies that depend on this coal may face higher costs and be forced to keep buying from these investors, further increasing their control over the market.

In summary, Wyoming and other states are challenging these investors for using their financial power to limit coal production, drive up prices, and hurt competition, all under the guise of pushing for environmental goals.