Following up on my previous posts:
Wall Street Journal, The Huge Tax Bills That Came Out of Nowhere at Vanguard (Jan. 24, 2022)
- New York Times, Holders Of Vanguard Target Funds File Class Action Over Massive Capital Gain Tax Bills (Apr. 12, 2022)
Bloomberg, Vanguard Reaches $40 Million Settlement to End Investor Tax Suit:
Vanguard finalized its $40 million settlement with investors who say the firm breached its fiduciary duty when it restructured its mutual funds in such a way that caused them to pay surprise capital gains taxes.
The settlement, filed in the US District Court for the Eastern District of Pennsylvania on Wednesday, will benefit a class of US investors who held shares in the Vanguard Target Retirement series of mutual funds and received capital gains distributions from them in 2021. Vanguard continues to deny wrongdoing or liability.
Investors sued Vanguard Chester Funds in 2022 after the group changed a key component of its retirement-oriented mutual funds, lowering the minimum investment amount needed to access its institutional funds from $100 million to $5 million. …
Judge John F. Murphy certified the investors’ proposed class one year ago, rejecting Vanguard’s “creative” argument that the investors lacked standing because “it might have done the aggrieved investors a favor by accelerating their tax liabilities,” making the alleged harms speculative.
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