BlackRock has invested more than $41.7 billion in Tennessee companies and is the world’s largest asset manager.

Tennessee said it settled a lawsuit with BlackRock Inc. after accusing the world’s largest money manager of allegedly breaching consumer protection laws by making “misleading” statements about its ESG investment strategy.

The lawsuit accused the firm of making “misleading” statements on how strongly ESG goals drove its investments.

(Reuters) -Republican-led Tennessee and asset manager BlackRock settled a dispute over the company's use of ESG factors in its investment decisions, according to a statement by the state's Attorney General Jonathan Skrmetti on Friday.

Tennessee AG Skrmetti settles with BlackRock over ESG disclosures, ensuring transparency and fidelity to investors' interests.

The settlement ends a lawsuit that was originally filed in December 2023 by the state of Tennessee under the Tennessee Consumer Protection Act. The suit alleged that BlackRock overstated the financial benefits of ESG-related strategies and didn’t adequately disclose its integration of ESG factors.