UNITED STATES — Vanguard, one of the largest mutual fund companies in the United States agreed to pay investors $106 million, CNN reports.
The issue arose after changes the company made to its investor target retirement funds. Those changes allowed for larger capital gains for investors who held the funds in those taxable accounts.
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After evaluation however, the securities and exchange commission found Vanguard made misleading statements in 2020 and in 2021 for those funds.
Because of these misleading statements, many investors decided to remove their investments from those accounts.
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Their misstep led to them being charged with not telling investors about the changes that were made, according to CNN.
While they agreed to pay $106 million to the affected investors, the company did not take any responsibility for their mistake.
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