Vanguard Clients Get First Court Nod for Tax Suit Settlement

A Pennsylvania federal judge gave preliminary approval to a proposed $25 million settlement of a class action accusing Vanguard Group Inc. of causing investors unexpected and preventable capital gains taxes.

The deal is subject to further consideration at a settlement hearing Jan. 6. But the terms as filed are “sufficiently fair, reasonable and adequate to the Settlement Class Members,” Judge John F. Murphy of the US District Court for the Eastern District of Pennsylvania said Sept. 8.

The plaintiffs sued over a 2021 move by Vanguard that lowered the minimum investment amount needed to access its institutional funds, an action ...