US investment firm Vanguard settled with 12 states on its portion of an antitrust lawsuit after the states claimed its practices restricted coal production and increased electricity prices.
The firm has agreed to pay $29.5mn to the states and will commit to not using its shareholdings to influence companies' environmental and sustainability practices, Texas Attorney General Ken Paxton said on Thursday.
The settlement partially resolves a lawsuit filed in November 2024 by Paxton and the other state attorney generals that accused Vanguard along with asset management firms BlackRock and State Street of using their shareholder positions to, among other things, coerce publicly traded US coal producers into reducing coal output in 2021. The states argued that these actions violated federal antitrust laws by weakening coal market competitiveness and contributing to higher power prices.
Vanguard's agreement "sets a new standard for institutional investors", Paxton said. He also described coal as an "essential industry" to support the US growing energy demands.
Texas is the lead plaintiff in the lawsuit. Other states involved in the case include coal-producing states Wyoming, West Virginia and Indiana.
While Vanguard's settlement concludes its role in the case, the lawsuit remains active against BlackRock and State Street, Paxton said. BlackRock and State Street did not respond to requests for comment.
BlackRock has previously denied the allegations, arguing in September 2025 that the complaint omits key data about long term shifts in US coal demand.
In its response, BlackRock said US coal production had been steadily declining for more than a decade before the firms were initially accused of colluding because of lower natural gas prices, increased coal plant retirements and rail service disruptions. The firm added that coal-fired electricity output fell nearly 70pc from 2008-2023, citing data from the US Energy Information Administration.
