Lincoln, NE- Attorney General Mike Hilgers joined a 13-state coalition yesterday, reaching a first-of-its-kind settlement with the private investment company “The Vanguard Group” in a multistate lawsuit that is also targeting global investment management companies such as BlackRock and State Street.
The lawsuit alleges the firms coordinated Environmental, Social, and Governance, also known as ESG-driven strategies that limited coal production, raised the prices on coal and electricity, and misled some investors. Under this settlement, Vanguard agreed to adopt strict “passivity” commitments, avoid using its shares to pressure portfolio companies on ESG goals, and expand proxy voting rights towards investors in at least 50% of its U.S. equity funds. Vanguard will also be paying $29.5 million to the plaintiff states…