Three of the most powerful financial companies in the world just learned they can’t steamroll Texas. Attorney General Ken Paxton scored a major victory this week when a federal district court judge denied BlackRock, State Street, and Vanguard’s attempt to kill his lawsuit before it even got started.
Translation: The biggest investment firms on Wall Street – companies that control trillions of your dollars – now have to answer in court for allegedly rigging energy markets and driving up your electricity costs.
What This Really Means for You
Here’s what happened in plain English: Attorney General Ken Paxton sued BlackRock, State Street Corporation, and Vanguard Group, three of the largest institutional investors in the world, for conspiring to artificially constrict the market for coal through anticompetitive trade practices.
These aren’t small-time players. BlackRock, Vanguard and State Street held $108.787 billion, $101.119 billion and $35.736 billion in coal investments, respectively, as of February 15, 2022. When companies this massive coordinate their actions, regular families feel it in their wallets.
The allegation is simple but explosive: These investment giants used their combined muscle to pressure coal companies into cutting production by half by 2030. Less coal means higher electricity prices for Texas families. It’s basic supply and demand – except this time, the “market forces” were allegedly three companies in boardrooms manipulating the system.
The Stakes Couldn’t Be Higher
Texas Attorney General Ken Paxton and 10 other states claim the money managers, as part of their green agenda, combined their market clout and membership in climate groups to pressure coal producers to cut output. Shortages have caused Texans and residents of the other states to pay higher energy costs.
Think about your last electric bill. Now imagine if it’s artificially inflated because three Wall Street firms decided to play puppet master with America’s energy supply. That’s exactly what Paxton alleges happened here.
“BlackRock, State Street, and Vanguard—three of the most powerful financial corporations in the world—created an investment cartel to illegally control national energy markets and squeeze more money out of hardworking Americans,” Paxton said. “Today’s victory represents a major step in holding them accountable.”
Why the Judge’s Decision Matters
When mega-corporations get sued, their first move is always the same: file a motion to dismiss and hope the case goes away before anyone has to produce documents or testify under oath. It’s Legal Defense 101.
But this federal judge said “not so fast.” By denying their motion to dismiss, the court ruled that Paxton’s case has enough merit to proceed under both Texas and federal antitrust laws, plus Texas consumer protection laws.
This means BlackRock, Vanguard, and State Street now face the prospect of:
- Turning over internal documents and communications
- Having their executives testify under oath
- Explaining their coordinated actions to a jury
- Potentially paying massive damages if found guilty
The Trump Administration Weighs In
The political implications are huge. BlackRock, Vanguard, and State Street formed a cartel to rig the coal market, artificially reduce the energy supply, and raise prices,” Paxton said in announcing the suit. “Their conspiracy has harmed American energy production and hurt consumers. This is a stunning violation of State and federal law.
In May 2025, the Trump Administration threw its weight behind Paxton’s lawsuit, providing federal backing for the state-led effort. When both state and federal authorities are aligned against the same defendants, that’s a powerful one-two punch.
What Happens Next
This ruling means the lawsuit moves into the discovery phase – the part where lawyers start demanding documents, deposing witnesses, and building their case for trial. For BlackRock, Vanguard, and State Street, this is where things get expensive and potentially embarrassing.
“As we made clear in our earlier motion to dismiss, this case is trying to re-write antitrust law and is based on an absurd theory that coal companies conspired with their shareholders to reduce coal production,” BlackRock said. But the judge disagreed, and now BlackRock has to prove that defense in court.
The Bigger Picture
This case isn’t just about coal or electricity prices. It’s about whether massive financial firms can coordinate to manipulate entire sectors of the American economy. If Paxton wins, it sends a message that even Wall Street giants aren’t above the law.
For Texas families struggling with high energy costs, this lawsuit represents hope that someone is fighting for them against forces that seem too big to challenge. Whether you care about energy independence, fair markets, or just keeping your electric bill reasonable, this case matters.
The legal battle is far from over, but this week’s victory proves that sometimes David really can take on Goliath – and win.
Read the full court ruling: Federal Court Order
Attorney General Paxton continues fighting to protect Texas energy consumers from Wall Street manipulation.
