Another huge blow against ESG thanks to Lone Star State Attorney General Ken Paxton.

A U.S. judge on Friday largely rejected a request by top asset managers including BlackRock to dismiss a lawsuit filed by Texas and 12 other Republican-led states that said the companies violated antitrust law through climate activism that reduced coal production and boosted energy prices.

U.S. District Judge Jeremy Kernodle in Tyler, Texas agreed to dismiss just three of the 21 counts in the states’ lawsuit, which also names institutional investors State Street tab and Vanguard.

…Texas Attorney General Ken Paxton said the three companies “created an investment cartel to illegally control national energy markets and squeeze more money out of hardworking Americans,” and that “today’s victory represents a major step in holding them accountable.”

Naturally, the companies denied any wrongdoing. But, like Reuters point out, the lawsuit’s outcome could significantly impact how these companies, who collectively managing around $27 trillion, handle their investments and passive funds.

BlackRock, Vanguard, and State Street allegedly colluded to manipulate the coal market, deliberately limit energy supply, and increase prices that, ultimately, heightened costs for consumers. Worst of all, the aforementioned hedge funds also used the large positions of shares they held in corporations to push them to embrace woke policies.

This climate cartel clearly aims to undermine the U.S. energy sector while showing contempt for the American people. This lawsuit is a fitting response targeting BlackRock (notably CEO Larry Fink), State Street, and Vanguard that have engaged in this nonsense for years. It’s about time they’re held accountable.