Breaking: Antitrust claims against Blackrock, State Street, and Vanguard survive motion to dismiss. Major effort to restrict supply of coal can proceed. Enormous win for @KenPaxtonTX, @AGIowa, a coalition of States, @AFergusonFTC and @TheJusticeDept. This is a *BIG* Deal.
Judge Kernodle (E.D. Texas) opens his opinion cleanly laying out the background of antitrust law and the allegations. Defendants own huge amounts of coal companies. And Plaintiffs allege they use that control to try to cut down on coal production. A classic violation.
Joining big organizations that commit you to unrealistic goals and coordination carries big risks. State AGs have been warning this for years. So have @WillHild and @ConsumersFirst --including whistleblowing about these organizations specifically.
"By joining these climate initiatives, Plaintiffs allege, Defendants sent a strong public message to all companies they are invested in: carbon output must decrease. And for the Coal Companies, that necessarily means producing less coal."
Even worse "Defendants publicly joined climate initiatives and pledged their assets to climate-based goals that necessarily result in the reduction of coal output, publicly proclaimed their intent to further these goals" and then engaged with the companies to achieve those goals
Defendants' antitrust "Safe Harbor" argument are unavailing--at least for now.
Regarding Sherman, the States' Texas-led complaint did all that it needed to survive an MTD--and more.
Again, it turns out that joining a conspiracy in restraint of trade is a legal problem--even when done in plain view.
As many commentators at the time recognized, the States' claims are novel in some respects -- but very straightforward in others. That type of creative application of precedent is the sign of Texas's superb lawyering.
Of course, one particular sweet point is that Iowa's state-specific claim survives. Iowa's Consumer Fraud Act is a fantastic tool to hold accountable misleading or deceptive acts.
Once I see a live link to this opinion, I'll add it. Until then you'll just have to trust me that I didn't mock this up myself . . .
Thanks to Zach for posting a live link to the opinion:
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