Vanguard to Settle Investors’ ‘Elephant Stampede’ Sell-Off Suit

Vanguard Group Inc. has reached a settlement with a group of investors who accused the firm of breaching its fiduciary duty by causing them “massive” capital gains tax bills, prompting a federal court to pause their litigation Monday.

The two sides plan to continue to hammer out the details of the settlement, but they have reached an agreement in principle to resolve all claims, they said in a joint stipulation filed Sept. 20 at the US District Court for the Eastern District of Pennsylvania.

Vanguard was sued in late 2022 by a group of investors who’d said they were hit ...