Vanguard's $40M Class Action Settlement: Here's Your Potential Payout

[@rob_berger]

I mention the Weighting Factor in the video. I suspect it was calculated based on the percentage the capital gains distributions represented to the share price in each fund. At least that's my best guess.

[@ChristianJacquet-my3rl]

I’m 53, retired a while at 45. I have 35% of my capital investments in an IRA, 20% in index funds, and the balance spread across other investment accts, in cumulative of over $850K. Currently looking for more investment opportunities.

[@MariaPerez-pp1dp]

You have an impressive portfolio. Since you are looking into more opportunities, consider consulting a financial advisor. They can help identify suitable opportunities and mitigate potential risks.

[@KevinCollins-kg5hl]

I completely agree. Bloomberg and others report significant wealth creation opportunities. I've seen this firsthand, achieving over $300,000 ROI since working with a financial advisor in 2023. Tailored strategies and risk management were key. If you're interested, I recommend researching and consulting a financial expert to find the best approach for you.

[@brianmurphy-j4h]

​ @KevinCollins I'm seeking long-term growth and have a moderate risk tolerance. How can I find a reputable financial advisor to help me navigate market volatility and achieve my goals?

[@KevinCollins-kg5hl]

I’ll be kind to leave just his name here ''Glen Howard Chester''. he's a renowned figure in the financial sector with over two decades of experience and an aum of over 500m usd.. I'd suggest you research him further on the web.

[@brianmurphy-j4h]

I looked him up and found his consulting page. I’ve got to say his credentials are truly impressive! I've scheduled a call to discuss further

[@janethunt4037]

Thank you for explaining this.

[@genzinvesting8405]

Vanguard is such a great brand but has been so poorly run recently

[@magalengo]

It has been poorly run for over a decade.

[@markmorris2517]

Much appreciated on the updated followup, Rob!

[@bobl634]

Thanks for the update, I will be submitting a claim when the time comes.

[@michaelevans5328]

If my surprise gains were $60,000 and my taxes on those gains were about 28% (15% federal, 9.3% state, 3.8% NIIT) or $17,000, and recovery under this settlement is about 10% after attorneys fees, my recovery would be about $1700. Not much to cheer about. The Massachusetts settlement was certainly more generous. But it is better than a stick in the eye. I think Vanguard lost a lot of customers over this, including me - after 40 years.

[@richardhead2318]

That really takes the passive out of passive investing.

[@MikePeaceWoodturning]

I have owned Vanguard funds (but nver target date funds) for years. Since Vanguard is a mutal company owned by its investors, where does the settlement money come from? Does this mean Vanguard will have to raise fees?

[@rob_berger]

A $40M payout will not affect Vanguard's fees. It's a drop in the bucket.

[@chriscamburn]

Plaintiff attorney fees are disgraceful. 30%. "Standard number" and "no guarantee" are weak defenses. When 15% = $13MM I'd push to settle, too.

[@profsteve7653]

Rob,thanks for your great advice,I am not part of this litigation but have a substantial holding at V for 45 years. Because I self manage I am seriously considering moving to fidelity,the website is a powerhouse and V's is dull. Appreciate your brokerage comparisons,thanks

[@hopper4273]

I already got my check from the Massachusetts settlement

[@Carl-iw9sy]

I had the retirement target fund 2035 through work for quite some time but later switched to my own portfolio. I would not have a clue where to start if I qualified for any this.

[@BlindBison]

Same here mate

[@rob_berger]

Remember, this doesn't apply to those who held these funds in retirement accounts, except in very limited circumstances dealing with distributions to a taxable account.

[@BlindBison]

@ thank you - I held VT in a taxable but this doesn’t seem to apply to ETFs if I’ve understood correctly. Thanks,

[@MILGEO]

Vanguard should address the way that they threw many long term clients under the bus by raising the minimum fee on fund accounts to $5 Million! For someone with 4 accounts, taxable, IRA, SEP IRA, and Roth IRA, that adds up! As an act of good faith, they should roll back some or all these charges that many of us never had before, IMHO. This was not something Jack Bogle would approve of and is probably turning over in his grave!

[@jimjacobsonmd]

I had a huge tax in my post tax account because of this distribution, but I never received an email about this settlement. WTF! Looks like I'm excluded from this settlement?

[@corinnerovetti3674]

I'm wondering the same!!!

[@rob_berger]

It hasn't been approved by the court yet. If it is approved, you should get a notice.

[@corinnerovetti3674]

@@rob_berger thanks so much for covering this scam! I wrote to Vanguard immediately after I shockingly got my tax forms and not only got a huge tax bite, but had to also withdraw my Roth contribution for the year. Was such an outrage and I thought it was just a wash! Vanguard's justification response added insult to injury! I somehow accidently landed on your channel about the lawsuit and have been watching for updates. So a big shout out to you for keeping us informed!

[@canyonoverlook9937]

Don't lawyers usually take contingent cases with a very good chance of winning though? What percent of contingent cases are lost by the plaintiff?

[@rob_berger]

Good question. I don't know.

[@manuvns]

I held 2050 TDF an my ROTH IRA at vanguard am i eligible ?

[@andreabgc4442]

I became part of the Massachusetts settlement a year ago, so I believe am no longer part of this class. Can you clarify that I am not? I would say I was made whole for the taxes I had to pay resulting from the distributions. I received the money in Dec 2023. In April 2024 I had to pay tax on the settlement money!

[@michaelswami]

From Vanguard’s perspective, the optics were terrible and optics are a huge deal in most juror’s minds.

[@pomme4moi]

Shame on Vanguard for not having simply acknowledged its mistake and made its retail investors whole.

[@hownwen]

Should i be worried? Rolled over a employer 401k to a vanguard target date fund 2030 in 2022....

[@rob_berger]

This wasn't an issue for retirement accounts like an IRA, as you only pay taxes when you take the money out.

[@corinnerovetti3674]

If one was affected, as I was, how does one benefit by this suit??

[@rob_berger]

If the court approves the settlement, you could file a claim and receive compensation based on the formula in the proposed settlement.

[@viiccd]

When you meant to say "this stems back to", you actually said "this STIMS back to". Why pronounce an e as if it is an i ?

[@chumbawumba1959]

My only question ... **HOW MUCH DOES SAUL GOODMAN GET?** lol

[@rob_berger]

Last I heard he was still in prison.

[@returningwhisper]

What was Vanguard’s reasoning for making the changes they did to their target date retirement funds?

[@magalengo]

Their reasoning is that they only care about big institutions, they treat retail clients like dirt.

[@rob_berger]

They lowered the minimum threshold of their instituional share class. It allowed smaller companies to benefit from the lower costs.

[@cato451]

Is that taxable? Lol

[@davidellison9937]

Should one be receiving notifications (Vanguard, counsel?) about being part of these suits? I too was clipped by these unexpected capital gains but have only been getting info/updates via this channel. Feel like my name may not be on the distribution list.

[@michaelevans5328]

I wonder how much of the 85% discount is uncertainty as to liability versus as to damages. Damages are tough because it would be hard for an individual plaintiff to prove either that she would not eventually have realized the gains (for example, the holdings would have been transferred upon death with a stepped up basis) or she would have realized the gains at a later date and at a lower tax rate. It seems clear that many of these class members would have had much lower tax liability if they had controlled when they realized the gains. But it seems hard to prove given uncertainty about when the gains would have been realized and what the individual’s tax situation would have been at that time.

[@rob_berger]

Agreed.

[@billmcline]

oh - is this state dependent?

[@rob_berger]

I don't believe the settlement is. Massachusetts had its own regulatory settlement with Vanguard.