BlackRock (BLK), Vanguard Group, and State Street (STT) are set to call on a federal judge at a hearing on Monday to dismiss a lawsuit led by Texas Attorney General Ken Paxton claiming that they coordinated to pressure coal producers to cut output, Bloomberg reported Sunday.
The lawsuit brought by Republican state attorneys general claims that the firms have leveraged their holdings in coal producers to facilitate the output reduction scheme that has "artificially" constrained coal supply, diminished competition in coal markets, increased energy prices, and produced "cartel-level" profits for the firms.
The firms and the Texas attorney general's office didn't immediately respond to requests for comment from MT Newswires.
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