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.

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 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.

BlackRock, Inc. has settled a dispute with Tennessee over its ESG practices, which the state said misled consumers. Attorney General Jonathan Skrmetti filed a consumer protection lawsuit against the investment firm in December 2023.

BlackRock, the worlds largest asset manager with $11.6 trillion under management, has reached a settlement with Tennessee Attorney General Jonathan Skrmetti over its use of sustainable-investment factors.

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

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.