NASHVILLE, Tenn. (WTVF) — Tennessee is now the first state in the country taking legal action against the world's largest asset management company, BlackRock Incorporated. One state leader says BlackRock has hurt Tennesseans and breached consumer protection laws.
Tennessee Attorney General Jonathan Skrmetti filed the lawsuit Monday against the Wall Street giant saying the asset manager deceived consumers as it pushes environmental, social and governance principles across their investment portfolio.
It's a 73-page lawsuit where the attorney general says BlackRock's statements about their investment strategies deprived consumers of the ability to make an informed choice with their money.
“We allege that BlackRock’s inconsistent statements about its investment strategies deprived consumers of the ability to make an informed choice,” Attorney General Jonathan Skrmetti said in a statement.
Skrmetti says some of the company's public statements show it focuses exclusively on return on investment, others show a company that gives special consideration to environmental factors.
In the lawsuit, Skrmetti stated ultimately, this is to make certain that corporations, no matter their size, treat Tennessee consumers fairly and honestly.
“Thus, BlackRock has articulated two inconsistent positions: one focusing solely on money and the other focusing on environmental impact. Tennessee consumers deserve to know which of BlackRock’s statements are a true account of the company’s decision-making. This enforcement action seeks injunctive relief, civil penalties, and recoupment of the State’s costs,” the state mentioned in a release.
BlackRock denies the claims and say they will fight any accusations. They're standing their ground claiming they accurately disclose their investment practices.
The attorney general's lawsuit seeks injunctive relief, civil penalties, restitution for customers and recoupment of the state's costs. This is a first of its kind lawsuit in the U.S.
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