“The Securities and Exchange Commission today announced that The Vanguard Group, Inc. will pay $106.41 million to settle charges for misleading statements related to capital gains distributions and tax consequences for retail investors who held Vanguard Investor Target Retirement Funds (Investor TRFs) in taxable accounts. The settlement amount will be distributed to harmed investors.”
Can’t wait for that $.03 check to cover the thousands in additional taxs!
Vanguard lowered the minimum investment requirement for its institutional target date funds resulting in redemptions from Vanguards regular Target Date fund… As a result, investors who held those funds in taxable accounts paid $259.5 million in capital gains taxes. This mistake has cost Vanguard $152.66 million in fines and restitution so far: $106.41 million in the SEC settlement, $40 million in a federal class action settlement, and $6.25 in a Massachusetts settlement. It will be interesting to see what the payout is to individual investors.
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