Gibson Dunn and Wilmer to Defend BlackRock in ESG Antitrust Lawsuit

Five Big Law firms have entered appearances for the world’s three largest asset managers accused of colluding in an environmental, social and governance scheme to reduce coal output in violation of federal antitrust statutes.

Gibson, Dunn & Crutcher and Wilmer Cutler Pickering Hale and Dorr represent BlackRock Inc.; Covington & Burling and Troutman Pepper Locke represent Vanguard Group Inc.; and Vinson & Elkins represents State Street Corp. in the antitrust lawsuit filed by 11 conservative state attorneys general.

State government plaintiffs led by Texas Attorney General Ken Paxton allege the Big Three investment management companies “artificially constrained the supply of coal” in a coordinated ESG scheme.

According to the allegations in the complaint, the defendants gained substantial ownership stakes in U.S. fossil fuel companies and then pressured industry executives to support environmental goals for net-zero greenhouse gas emissions.

The red-state plaintiffs filed the complaint Nov. 27 in the U.S. District Court for the Eastern District of Texas. Litigation boutique Cooper & Kirk and Houston trial lawyer Tony Buzbee of the Buzbee Law Firm are assisting the GOP state attorneys general as outside counsel.

The complaint alleges Clayton Act violations and demands damages, restitution, civil penalties and injunctive relief to “restore free and open competition to the coal markets.”

Much of the complaint focuses on BlackRock’s alleged role in pushing ESG priorities. Gibson Dunn partner Gregg J. Costa entered an appearance for BlackRock on Dec. 23 and filed an unopposed application requesting additional time to answer the complaint.

BlackRock and Vanguard received an extension to answer the complaint by Jan. 23, while State Street has until Jan. 17 to file an answer to the complaint.

U.S. District Judge Jeremy D. Kernodle of the Eastern District of Texas, an appointee of former and future President Donald Trump, is presiding over the case.