Staff Reports
In a financial faceoff that could make the bulls and bears pause for a moment, BlackRock, the heavyweight of asset management, found itself square in the crosshairs of Tennessee's legal arsenal. Imagine a Wild West duel, but instead of six-shooters, it’s an intense legal tango over ESG investing strategies.
BlackRock sued by Tennessee over claims it ‘misled consumers’ on ESG investmentshttps://t.co/tQM1XxIm2h pic.twitter.com/ey0WCHJ7Xq
— The Washington Times (@WashTimes) December 19, 2023
Tennessee's legal gunslinger, Attorney General Jonathan Skrmetti, didn’t just raise an eyebrow; he slung allegations like a verbal lasso. In the heart of this legal wrangling, Skrmetti, a proud figure of the Republican party, accused BlackRock of a cowboy's classic two-step: chasing investment returns while tipping its hat to "environmental factors." According to Skrmetti, this dance isn’t exactly in harmony with Tennessee's legal hoedown.
Skrmetti's message? No fancy footwork allowed when it comes to big corporations—everyone's expected to square dance fair and square. He’s out on the plains, championing fairness and honesty for Tennessee’s folks. A lone ranger standing up for the everyday cowpoke?
This lawsuit ain’t just a legal first-rounder. It’s a heavyweight title bout against BlackRock's daring use of ESG, the renegade investment strategy. Picture ESG as the saloon where climate change and social justice sit down for a game of poker—only in the financial world, and it's stirring up quite the dust storm.
Tennessee’s swinging their lasso wide, aiming for a grand jury trial and a wagon-load of compensation: legal fees, civil penalties, and a pouch of restitution for the folks who might’ve been led astray. It’s a battle cry against what they see as BlackRock’s misleading serenade on the effects of their ESG dance.
But Tennessee ain’t the lone ranger in this tussle. Many other states, notably those waving the conservative banner, have hitched their horses to the anti-ESG wagon, yanking billions away from players like BlackRock. It’s a full-scale ESG showdown—think of it as financial poker with states holding some serious cards.
