West Virginia Attorney General J.B. McCuskey
CHARLESTON – West Virginia Attorney General J.B. McCuskey is part of a first-of-its kind settlement with The Vanguard Group regarding its ESG policies.
In 2024, West Virginia and 13 other states filed a federal lawsuit against major investment firms Blackrock, State Street and Vanguard alleging the firms used their ownership interests in major coal producers to manipulate the price of coal and gain undue profits by decreasing coal production under the guise of environmental, “green” policies.
By intentionally decreasing the supply of coal in pursuit of “green” policy objectives, the suit alleges these firms profited from the increased value of coal that resulted from the manufactured coal scarcity that they created.
Under the terms of the settlement, Vanguard has agreed to pay the participating states, including West Virginia, an amount of $29.5 million dollars.
In addition, the company has agreed to cooperate with the states in their discovery efforts as the case remains ongoing against the remaining Blackrock and State Street. The company also has agreed to refrain from using their position to influence the business strategies of their portfolio companies.
McCuskey’s office declined to comment on the settlement. But Louisiana’s Liz Murrill, another AG who signed the lawsuit, did.
"ESG and radical green energy scams have no place in Louisiana or this country,” Murrill said in a press release. “This good-faith settlement agreement with Vanguard sends an important signal to other investment firms that may attempt to use their influence to advance their own preferred environmental policies. Our focus will now shift to BlackRock and State Street.
“This outcome represents one more step toward lowering energy prices and maintaining affordability for everyone in our state. We look forward to achieving similarly positive outcomes as the case progresses.”
Missouri AG Catherine Hanaway did as well.
“This agreement with Vanguard is an important step in the right direction to protect American investors from green energy scams seeking to undermine our energy markets,” Hanaway said in a press release. “ESG and radical social agendas have no place in our business marketplace.
“We will continue to support efforts to hold asset managers accountable and protect the millions of Missourians who rely on coal power.”
In addition to West Virginia, Louisiana and Missouri, the attorneys general from Alabama, Arkansas, Indiana, Iowa, Kansas, Montana, Nebraska, Oklahoma, Texas and Wyoming are plaintiffs in the lawsuit, which was filed in Texas.
U.S. District Court for the Eastern District of Texas case number 6:24-cv-00437-JDK
