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 ...
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