Investors Sue Vanguard After Target Date Funds’ Big Tax Bill

Three investors are suing Vanguard Group for alleged negligence and breach of fiduciary duty, saying that changes the company made to target date retirement funds resulted in “massive tax bills” for individual investors.

Their lawsuit, which is seeking class action status on behalf of customers who invested in Vanguard’s target retirement funds, is seeking compensation for “hundreds of millions of dollars” in harm to thousands of investors.