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.

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.

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

BlackRock agreed to increase its disclosure of proxy voting practices and to a third-party audit to show it is complying with the state's terms.

Asset manager BlackRock agreed to new disclosure requirements about its use of sustainable-investment factors as part of a legal settlement with Tennessee Attorney General Jonathan Skrmetti, his office said on Friday.

BlackRock and the state of Tennessee on Friday reached a settlement over a lawsuit claiming the asset management firm downplayed how large a role environmental, social and governance proposals made in its investment process.

(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.