11.07.24

Vanguard Reaches $40 Million Settlement in Target-Date Fund Lawsuit

by: Andrew Welsch

Vanguard has agreed to pay $40 million to settle a lawsuit brought by a group of investors over changes the asset manager made to target-date funds (TDFs) that the investors say stuck them with large tax bills. The settlement comes more than two years after investors in Vanguard’s TDFs filed their initial complaint seeking class action status in a federal court in Philadelphia in March 2022. The investors had accused Vanguard of breach of fiduciary duty over changes to TDFs that resulted in what they say were large unnecessary capital gains distributions.

Read the full article on Barron's