On November 27, 2024, a group of eleven state attorneys general (the “AGs”) sued three of the world’s largest asset managers (the “Asset Managers”), accusing them of anticompetitive stock acquisitions, deceptive asset management practices, and an antitrust conspiracy to restrict coal output. The states seek declaratory and injunctive relief including divestitures, as well as fines under state laws, although the allegations could provide a basis for follow-on private treble damages claims under the antitrust laws.

The AGs’ antitrust and consumer protection suit follows a series of cease-and-desist letters and demands for information by many state attorneys general including the plaintiffs here, as well as a lengthy congressional investigation accusing sustainability-focused investors and climate activists of forming a “climate cartel.” That investigation produced an extensive House Judiciary Committee Report compiling internal material regarding activities by sustainability-focused investment groups and their members, which the minority “Counterreport” alleged had been subpoenaed and published specifically to enable like-minded state law enforcers to bring suit.

While this client alert focuses on the details of the litigation against these Asset Managers, there are practical steps that all companies should take when considering sustainability-focused collaborations, standards, or goals. We discuss some of them below, as well as in a recent client alert and a ABA Section of Environment, Energy, and Resources’ Trends article.Continue Reading Eleven States Sue Asset Managers Alleging ESG Conspiracy to Restrict Coal Production