Investors can move forward with their lawsuit accusing Vanguard of breaching its fiduciary duty of care by opening some of its institutional target date retirement funds to smaller shareholders, a decision that the investors say led to unexpected capital gains tax bills.
Judge John F. Murphy of the US District Court for the Eastern District of Pennsylvania held that the investors have established standing to bring the lawsuit and stated a plausible claim for breach of care against Vanguard’s officers and independent trustees. However Vanguard was successful in knocking down some other claims, including claims of gross negligence, unjust enrichment, ...
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