DOJ weighs joining Texas suit against BlackRock and State Street

Senior Justice Department officials have recently discussed with the states and the companies the possibility of the DOJ joining a Texas-led antitrust lawsuit against BlackRock and State Street. No decision has been made, and the department could take no action. The suit, filed in late November 2024 by Texas and other Republican state attorneys general, alleges the firms used market power and climate-group ties to pressure coal producers to reduce output and raise electricity prices. In May 2025 the DOJ and FTC filed a statement of interest saying the alleged conduct, if true, would violate antitrust law. At a June 2025 hearing, states' counsel Brian Barnes told the court the firms individually and collectively had enough stake in publicly traded coal companies to influence management. In August 2025 U.S. District Judge Jeremy Kernodle declined to dismiss most claims, saying the states had identified enough circumstantial evidence of an agreement to pressure coal output cuts. Trial is scheduled for January 2028. Vanguard, originally a co-defendant, settled in February for $29.5 million, agreed not to impose ESG investment goals, and denied wrongdoing. BlackRock called the case an attempt to rewrite antitrust law based on an absurd theory; State Street said it remains baseless and without merit. The DOJ declined to say whether it will join and said it is focused on affordability for all Americans. Texas AG's office did not respond.