Description: Tennessee Attorney General's civil enforcement against BlackRock, Inc. alleging violations of the Tennessee Consumer Protection Act in connection with alleged ESG investment strategies.
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State ex rel. Skrmetti v. Blackrock, Inc.
Case Documents:
Filing Date Type File Action Taken Summary 12/18/2023 Complaint Download Complaint filed. Tennessee Attorney General Said BlackRock Violated Tennessee Consumer Protection Act with Misleading Information About ESG. The Tennessee Attorney General filed a civil enforcement complaint against BlackRock, Inc. in December 2023 alleging that the investment management firm had “been at the forefront of using aggressive strategies to push controversial Environmental, Social, and Governance [(ESG)] goals across the assets it manages,” including goals to reduce portfolio companies’ carbon emissions. The complaint alleged that BlackRock misled consumers about the scope of its ESG activity in violation of the Tennessee Consumer Protection Act. The Attorney General contended that the “shifting public and political dynamics around ESG have left BlackRock in a bind”— needing to appeal to “a broad base of customers, many of whom do not want their funds or investment managers engaged in ESG-related activities,” while remaining a member of organizations that “demand sweeping ESG commitments.” The Attorney General charged that BlackRock had elected to deceive consumers about its commitment to ESG aims by “falsely convey[ing] that certain of its funds do not incorporate ESG considerations” and by “overstat[ing] the extent to which its ESG aims bear on companies’ financial positioning and performance,” including by representing that consideration of ESG factors creates financial benefits to investors. The Attorney General sought an injunction to bar BlackRock from engaging in TCPA violations; civil penalties; orders and judgment restoring to consumers money or property lost as a result of the violations; and orders and judgments necessary to “disgorge the net-profits and ill-gotten gains BlackRock realized.”