{"id":2128211,"date":"2023-12-18T15:25:01","date_gmt":"2023-12-18T20:25:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tennessee-attorney-general-sues-blackrock-for-misleading-investors-about-esg-agenda\/"},"modified":"2023-12-18T15:29:13","modified_gmt":"2023-12-18T20:29:13","slug":"tennessee-attorney-general-sues-blackrock-for-misleading-investors-about-esg-agenda","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/tennessee-attorney-general-sues-blackrock-for-misleading-investors-about-esg-agenda\/","title":{"rendered":"TN AG sues BlackRock for deceiving investors on ESG agenda"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ftennessee-attorney-general-sues-blackrock-for-misleading-investors-about-esg-agenda%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2128211&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Tennessee Attorney General Files \u2062Lawsuit Against BlackRock\u200b for Misleading Consumers<\/h2>\n<p>The Tennessee Attorney General, Jonathan Skrmetti, has taken legal action against BlackRock, the world&#8217;s largest asset\u2063 manager. The lawsuit, filed on Monday, accuses the \u200bfirm \u200bof violating consumer protection\u200d laws by misleading consumers \u200cabout its pursuit of leftwing social and environmental goals.<\/p>\n<blockquote>\n<p>&#8220;We allege that BlackRock&#8217;s\u200d inconsistent statements about its investment strategies deprived consumers of the\u2063 ability to make an informed choice,&#8221; Skrmetti \u2064stated. &#8220;I want to make certain that\u2064 corporations, no matter\u2062 their size, treat\u200d Tennessee consumers fairly and honestly.&#8221;<\/p>\n<\/blockquote>\n<p>The lawsuit focuses on BlackRock&#8217;s Environmental,\u2062 Social, and Governance (ESG) initiatives, claiming that consumers were not given\u200c an accurate understanding\u200b of the firm&#8217;s objectives.<\/p>\n<p>This legal action \u2064comes as\u200c several Republican-led \u200cstates have divested from BlackRock due to \u2062concerns about the company&#8217;s emphasis on ESG. Skrmetti joined a coalition of \u206420 other <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/dems-include-money-for-abortion-providers-in-1-9-trillion-covid-aid-package\/\" title=\"Dems Include Money for Abortion Providers in .9 Trillion COVID Aid Package\">state attorneys general<\/a> who previously warned BlackRock about potential conflicts between its fiduciary duties and political \u200bagenda.<\/p>\n<blockquote>\n<p>The \u200clawsuit argues that BlackRock misled consumers &#8220;about\u200c the scope and effects of \u2064its widespread ESG activity.&#8221;\u200d It points to an interview with BlackRock CEO Larry Fink, where he stated,\u2064 &#8220;Everything \u200bwe do is on behalf of our clients, and everything we do is \u2064with the purpose of \u200dfinancial returns.&#8221;<\/p>\n<\/blockquote>\n<p>However, the lawsuit highlights that BlackRock, with\u200c its $9 trillion in\u200c assets under management, is part of environmentally-focused \u2062coalitions\u200d that impact clients&#8217; assets. It \u200dspecifically mentions two ESG coalitions, the \u2063Net Zero Asset Managers Initiative and Climate Action\u2062 100+, and asserts that membership in \u2062these organizations is contingent on lobbying, engagement, voting on\u200b shareholder proposals, and\u200d managing assets with the goal of achieving &#8220;net\u2064 zero&#8221; emissions by 2050.<\/p>\n<p>The lawsuit further alleges \u2062that BlackRock has falsely conveyed that certain funds do not incorporate ESG \u200dconsiderations. While the\u2063 company claims that \u200cits non-ESG funds\u200b do not \u200cfollow a sustainable \u2063or impact investment strategy, it is\u200b a member\u2062 of \u200dthe\u2062 Net Zero Asset Managers \u2062Initiative, which requires a commitment to achieving net zero emissions.<\/p>\n<blockquote>\n<p>&#8220;BlackRock&#8217;s\u2062 disclosures do not mention such promises,&#8221; Skrmetti&#8217;s office notes. &#8220;Tennessee consumers deserve to know which of BlackRock&#8217;s statements are a true account of the \u200ccompany&#8217;s decision-making.&#8221;<\/p>\n<\/blockquote>\n<p>The lawsuit seeks injunctive relief,\u200d civil penalties,\u200b and recoupment of the state&#8217;s costs. Skrmetti\u2064 aims to ensure that corporations, regardless of their size, are held\u2063 accountable\u2063 for \u200ctreating Tennessee consumers fairly and honestly.<\/p>\n<p> <\/p>\n<h2> What\u200b specific allegations\u200b does the Tennessee Attorney General&#8217;s Office make against BlackRock\u200b regarding the lack\u2063 of transparency in its ESG practices?<\/h2>\n<p><span>  A response to concerns raised by consumers \u2063and advocacy groups\u200b about the lack of transparency in BlackRock&#8217;s ESG practices. ESG initiatives \u200cinvolve investing in companies that align with certain social and environmental values. BlackRock has been promoting its ESG funds as an investment option\u2063 for consumers\u2064 who want to support companies committed \u2064to \u2064sustainability and\u2062 social responsibility.<\/p>\n<p>However, the\u2064 Tennessee Attorney General&#8217;s Office alleges that\u2063 BlackRock \u2064has made misleading statements\u2062 regarding the extent to which it \u200dconsiders ESG factors in its investment decisions. The \u2064lawsuit alleges\u200b that BlackRock failed to disclose the\u2063 true\u2063 nature \u2062of\u200b its investment strategies and\u200b the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-state-department-gives-official-guidance-to-americans-trapped-inside-ukraine-amid-russian-invasion\/\" title=\"U.S. State Department Gives Official Guidance To Americans Trapped Inside Ukraine Amid Russian Invasion\">potential risks involved<\/a> \u200bin these\u200b funds.<\/p>\n<p>In recent years, there has been a growing demand for\u200d ESG investments as consumers increasingly seek to align their \u2064financial decisions with their values. Many\u200d investors are willing to pay a premium for\u200b funds that prioritize environmental and social concerns. However, \u200dthe \u2062lawsuit argues \u2064that BlackRock took advantage of \u2064this trend by falsely representing the emphasis\u2063 placed on ESG factors in its investment decisions.<\/p>\n<p>The lawsuit filed by the Tennessee Attorney\u200d General&#8217;s\u2064 Office seeks to hold BlackRock\u200b accountable for its alleged\u200b misleading \u2062statements and to ensure that consumers are\u200d provided with accurate and transparent information about the firm&#8217;s investment strategies. If the allegations are proven\u200d true, BlackRock\u2064 could\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-rules-against-christian-college-suing-biden-administration-over-trans-mandate\/\" title=\"Judge Rules Against Christian College Suing Biden Administration Over Trans Mandate\">face financial penalties<\/a> and be required to change its \u2063practices in order\u200c to \u200ccomply with \u2063<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nhs-director-calls-out-gwyneth-paltrow-for-covid-19-recovery-advice\/\" title=\"NHS Director Calls Out Gwyneth Paltrow For COVID-19 Recovery Advice\">consumer protection laws<\/a>.<\/p>\n<p>This\u2063 case serves as a reminder that consumers need to be \u200dvigilant and do\u2063 their due diligence when making investment decisions. It\u2064 is important to\u2062 thoroughly research and understand the investment\u200c products being offered and to\u200d assess whether they align with one&#8217;s\u2062 personal values and financial goals. \u200cAdditionally, regulators and watchdog organizations play a crucial role \u2064in\u200c holding companies accountable for their actions and protecting consumers from deceptive practices.<\/p>\n<p>The outcome of this lawsuit\u2063 will likely have implications beyond Tennessee, as it\u2064 could set \u2063a precedent for\u2064 how ESG\u200d funds are marketed and how\u2063 companies are expected to disclose information about their investment strategies. It is a wake-up call for \u200dthe asset \u2064management industry as a whole, reminding firms that they have a \u200bresponsibility to provide accurate and \u2063transparent information to investors.<\/p>\n<p>In conclusion, the lawsuit filed\u2063 by the Tennessee Attorney General against BlackRock highlights the need for greater transparency\u2063 and accountability in \u200bthe <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/whos-really-behind-large-companies-woke-agendas\/\" title=\"Who\u2019s Really Behind Large Companies\u2019 Woke Agendas?\">asset management industry<\/a>.\u200d Consumers deserve \u2062to have access to accurate and reliable information about \u2063the investment products they are considering, especially when it comes to funds\u2063 that claim to prioritize environmental and\u2063 social considerations. This\u200b case serves as a \u2063warning to companies that engage in misleading \u2063practices \u2062and reinforces the importance of\u2063 consumer protection laws in\u2064 ensuring fair and honest treatment for all consumers.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Tennessee AG Jonathan Skrmetti sues BlackRock, accusing the asset manager of breaching consumer protection laws. The lawsuit targets BlackRock&#8217;s ESG initiatives, claiming consumers were deceived about its pursuit of leftwing social and environmental objectives. Skrmetti alleges that customers were denied accurate information. BlackRock, the global leader in asset management, faces legal scrutiny<\/p>\n","protected":false},"author":503,"featured_media":2128212,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-2128211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2128211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/503"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2128211"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2128211\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2128212"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2128211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2128211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2128211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}