Eastern District Of Texas Denies Motion To Dismiss Coordinated Stewardship Complaint Against Asset Managers

On August 1, 2025, the United States District Court for the Eastern District of Texas denied the motions to dismiss filed by three asset managers. The complaint, brought by thirteen plaintiff states (Texas, Alabama, Arkansas, Indiana, Iowa, Kansas, Missouri, Montana, Nebraska, Louisiana, Oklahoma, West Virginia, and Wyoming) and supported by a joint DOJ/FTC statement of interest, alleges that defendants used ownership interests in major coal companies to limit coal production in furtherance of environmental stewardship and concern for the climate. Defendants moved to dismiss the complaint on grounds, inter alia , that: (i) plaintiffs failed to allege “lessening of competition” as required by Clayton Act §7; (ii) defendants are “passive investors” protected by the safe-harbor provision in