The Rob Berger Show

RBS 136: Vanguard Class Action Lawsuit Over Target Date Funds to Move Forward


Listen Later

In December 2020, Vanguard made some changes to its Target Date Funds. The changes benefits large, institutional investors by lowering costs. But it hurt small, retail investors who held target funds in taxable accounts. The result was that in 2021, these small investors got hit with massive capital gains.

In response, a class action lawsuit was filed against Vanguard and related parties. The defendants moved to dismiss the case. They argued that the plaintiffs didn't have standing to sue, meaning they hadn't been harmed. Vanguard even went so far as to claim that the capital gains hit benefited the small investors because, theoretically, they may have to pay even more at some point in the future.

Vanguard also moved to dismiss the case, arguing that it hadn't breached any duties of care or loyalty to the investors.

The judge in the case has ruled largely in favor of the plaintiffs. The case will be forward to the next phase--discovery.

Here's a copy of the judge's ruling: https://www.bloomberglaw.com/public/d...

Join the Newsletter. It's Free:
https://robberger.com/newsletter/?utm...

View all episodesView all episodes
Download on the App Store

The Rob Berger ShowBy Rob Berger

  • 4.8
  • 4.8
  • 4.8
  • 4.8
  • 4.8

4.8

131 ratings


More shows like The Rob Berger Show

View all
Sound Retirement Radio by Jason Parker

Sound Retirement Radio

429 Listeners

Your Money, Your Wealth by Joe Anderson, CFP® & Alan Clopine, CPA of Pure Financial Advisors

Your Money, Your Wealth

745 Listeners

The Retirement and IRA Show by Jim Saulnier, CFP® & Chris Stein, CFP®

The Retirement and IRA Show

732 Listeners

Retirement Answer Man by Roger Whitney, CFP®, CIMA®, RMA, CPWA®

Retirement Answer Man

1,286 Listeners

Retirement Starts Today by Benjamin Brandt CFP®, RICP®

Retirement Starts Today

491 Listeners

Big Picture Retirement® by Devin Carroll, CFP® & John Ross, JD

Big Picture Retirement®

494 Listeners

Stay Wealthy Retirement Podcast by Taylor Schulte, CFP®

Stay Wealthy Retirement Podcast

538 Listeners

The NewRetirement Podcast by Steve Chen

The NewRetirement Podcast

182 Listeners

Bogleheads On Investing Podcast by bogleheads

Bogleheads On Investing Podcast

560 Listeners

The Long View by Morningstar

The Long View

857 Listeners

Sound Investing by Paul Merriman

Sound Investing

321 Listeners

Ready For Retirement by James Conole, CFP®

Ready For Retirement

763 Listeners

Retirement Planning Education, with Andy Panko by Andy Panko

Retirement Planning Education, with Andy Panko

690 Listeners

Retire With Style by Wade Pfau & Alex Murguia

Retire With Style

168 Listeners

The Great Retirement Debate with Ed Slott & Jeffrey Levine by The Great Retirement Debate with Ed Slott & Jeffrey Levine

The Great Retirement Debate with Ed Slott & Jeffrey Levine

124 Listeners