Attorney General Brenna Bird Secures Agreement from Vanguard to Protect U.S. Energy and Lower Consumer Prices

DES MOINES—Attorney General Brenna Bird and a coalition of 13 attorneys general have secured a first-of-its kind settlement with The Vanguard Group, resolving part of a multistate lawsuit against asset managers BlackRock, State Street, and Vanguard. The lawsuit seeks to lower the cost of coal—and, thereby, electricity prices—throughout the United States by combatting a BlackRock-led cartel that drove up the price of electricity under the guise of “green energy” investing. 

As part of the settlement, Vanguard has agreed to be the first in the industry to empower its investors by letting them vote their own shares. This settlement represents a win against coordinated ideologically driven market manipulation, ensures a competitive and low-cost coal industry, and resets the precedent for the conduct of large institutional investors. 

BlackRock’s efforts produced massive profits for itself and its co-conspirators and raised the prices of electricity on consumers throughout the United States. President Trump’s Department of Justice and Federal Trade Commission support this lawsuit and filed a joint statement of interest.  

“Iowans should not have to pay higher prices for energy because of woke wall street agenda,” said Attorney General Bird. “I’m grateful that Vanguard has chosen to set higher standards for the industry and has agreed to resolve this case. We’ll set our sights on BlackRock and State Street now and continue to fight for truly competitive markets to help Iowans and all Americans.”   

Under the settlement, Vanguard has committed to avoid imposing agenda-driven goals over its customers’ profitability. For example, Vanguard will not use its shareholdings to (a) direct its portfolio companies’ business strategies, (b) threaten companies that it will withdraw from its holdings unless they agree to act in support of ESG over the company’s interests, or (c) nominate directors or shareholder proposals to its portfolio companies. Vanguard has also agreed to pay $29.5 million to the states. 

Also, Vanguard will offer proxy voting to investors in funds accounting for at least 50% percent of assets invested in U.S. equity funds it advises. This will ensure that Vanguard’s customers can make their voices known on portfolio companies’ business, including whether companies should maximize profitability over ESG or other goals. 

This action is led by Texas, joined by Iowa, Alabama, Arkansas, Indiana, Kansas, Louisiana, Missouri, Montana, Nebraska, Oklahoma, West Virginia, and Wyoming.  

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For More Information:

Jen Green 

jen.green@ag.iowa.gov