(Adds details throughout.)
BlackRock (BLK), State Street (STT) and Vanguard Group have been accused by authorities in Texas and nearly a dozen other states of using their investments in coal mining and utility companies to manipulate electricity prices.
Led by Texas Attorney General Ken Paxton, the states accuse the three money managers of pressuring coal companies to "deliberately and artificially constrict" supply, resulting in higher prices and producing "extraordinary revenue gains" for their investments. The plaintiffs also accuse the companies of violating federal and state antitrust law barring shareholders from using their positions as investors to block potential competition.
Joining Paxton in the suit filed Wednesday in federal court in Tyler, Texas, were attorneys general from 10 other states, including Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, West Virginia and Wyoming.
BlackRock, State Street and Vanguard did not immediately reply to requests for comment from MT Newswires on Wednesday.
Price: 1031.89, Change: +5.41, Percent Change: +0.53
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.