Overview
- A coalition of 13 Republican attorneys general announced a partial settlement that removes Vanguard from their federal antitrust lawsuit over alleged ESG collusion affecting coal markets.
- Vanguard will pay $29.5 million and accept restrictions designed to keep it from directing portfolio companies’ strategies or advancing environmental or social shareholder proposals.
- The firm will broaden investor proxy‑voting choice to cover at least 50% of assets in its U.S. equity funds and will increase transparency about its roles in climate‑focused groups.
- Vanguard denied wrongdoing and said the resolution reaffirms the passive nature of its index funds and existing stewardship practices.
- BlackRock and State Street remain defendants and continue to fight the case, with State Street calling the claims baseless, as earlier DOJ and FTC briefs had lent support to the states’ position.