Vanguard has agreed to pay $40 million to settle a long-running lawsuit over a selloff that traders likened to an “elephant stampede” from its target-date funds that left retail traders to take an enormous capital good points tax hit.
The selloff concerned multimillion-dollar company retirement plans getting out of the usual goal funds and into the institutional equivalents.
“Vanguard is dedicated to supporting on a regular basis traders and retirement savers and is glad to have reached an settlement that enables us to place this litigation behind us,” Vanguard stated in an announcement shared with ThinkAdvisor.
The category-action lawsuit was filed in March 2022 by retail traders Valerie M. Verduce, Catherine Day and Anthony Pollock.
