(The Center Square) – Tennessee Attorney General Jonathan Skrmetti filed a lawsuit against the investment firm BlackRock stating the company prioritized environmental, social and governance investment goals over the best interests of its clients.
The lawsuit claims BlackRock said its funds were devoid of ESG considerations when the company actually admitted it was prioritizing ESG considerations.
Skmetti alleges BlackRock’s actions are a violation of the Tennessee Consumer Protection Act. The lawsuit was filed in Williamson County Circuit Court.
“We allege that BlackRock’s inconsistent statements about its investment strategies deprived consumers of the ability to make an informed choice,” Skrmetti said in a statement. “Some public statements show a company that focuses exclusively on return on investment, others show a company that gives special consideration to environmental factors. Ultimately, I want to make certain that corporations, no matter their size, treat Tennessee consumers fairly and honestly.”
Blackrock had $8.6 trillion of assets under its management as of Dec. 31, 2022, while employee 19,800 in 30 countries for clients in more than 100 countries.
The lawsuit asks the court to require BlackRock to appear and answer for the claims as well as declaring that BlackRock has violated the TCPA and prevent it from continuing to do so in the future.
Tennessee’s Senate Democrats, however, said the lawsuit was a waste of taxpayer dollars.
“Tennessee’s attorney general is wasting our tax dollars to sue an investment firm because they might be investing in companies that recognize a melting planet is bad for business,” the group said.
