Red State AG slaps BlackRock with a lawsuit for allegedly harming consumers

Tennessee Republican Attorney General (AG) Jonathan Skrmetti on Monday filed a consumer protection lawsuit against BlackRock, the world's largest asset manager and a leading proponent of environmental, social and corporate governance (ESG) investing. .

The consumer protection lawsuit alleges that BlackRock has misled Tennessee consumers about the scale and impacts of its ESG initiatives for several years. The lawsuit also alleges that BlackRock's own policies and corporate voting records demonstrate that its ESG push is influenced by financial products that are marketed as non-ESG funds, despite the company's statements that it allocates capital when the his clients ask for it as a fiduciary.

“We allege that BlackRock's inconsistent statements about its investment strategies deprived consumers of the ability to make an informed decision,” Skrmetti said in a statement. “Some public statements show a company that focuses exclusively on return on investment, others show a company that has special consideration for environmental factors. Ultimately, I want to make sure that corporations, regardless of size, treat Tennessee consumers fairly and honestly.”

Nikki Haley meets with BlackRock CEO Larry Fink and other Wall Street eliteshttps://t.co/2CHInqgu4g

— Daily Caller (@DailyCaller) November 17, 2023

BlackRock has more than $8 trillion in assets under management, according to the lawsuit. Because of its size and diverse holdings, the company has considerable influence over many US companies due to its large shareholder voting blocs, which Skrmetti alleges the company uses to push its own policies and preferences, including ESG policies that advance decarbonisation and climate agendas.

“We reject the Attorney General's claims and will vigorously contest any allegations that BlackRock violated Tennessee's consumer protection laws. Contrary to the Attorney General's claims, BlackRock fully and accurately discloses our investment practices and our approach of proxy voting,” a BlackRock spokesperson told the Daily Caller News Foundation. “On behalf of our clients, BlackRock has invested approximately $40 billion in Tennessee, and we are helping more than 600,000 Tennessee workers retire with dignity. We are proud of our contribution and committed to the future in Tennessee.”

Many of BlackRock's clients are institutional investors, including pension funds, endowments and foundations, government institutions and financial institutions, according to the lawsuit.

“BlackRock has agreed to use all of its portfolio assets to push the net zero agenda,” Will Hild, chief executive of Consumers' Research, told the DCNF. “If you have a dollar invested in BlackRock, you are invested in an ESG fund.”

Conservative officials have done it hard criticized ESG investing in the past to inject politicized considerations into the traditional investment model, where maximizing returns is the top priority.

BlackRock's ESG investing has also drawn scrutiny from Republican state officials in the past. Several red states, such as Louisiana i Missouri, have divested tens of millions of dollars in state-owned assets from the company and some of its competitors that similarly promote ESG investing. More recently, BlackRock and several of its prominent competitors have sat before a House Judiciary Committee research in possible collusive agreements to promote ESG.

Latest messages from Nick Pope (see everything)

We have zero tolerance for comments that contain violence, racism, profanity, profanity, doxing, or rude behavior. If a comment is spam, instead of replying to it, click the ∨ icon below and to the right of that comment. Thank you for engaging with us in a fruitful conversation.

JOIN OUR NEW COMMENT SYSTEM! We love hearing from our readers and invite you to join us for feedback and good conversation. If you've commented with us before, we'll need you to re-enter your email address for this. The public won't see it and we won't share it.