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

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Күн бұрын

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@rob_berger Ай бұрын

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.

@larsandersen9967 27 күн бұрын

I am still mad at Vanguard. They knew exactly what they did to us. Jack Bogle would have never approved it. I emailed them back then, and of course got a boilerplate CYA response.

@genzinvesting8405 Ай бұрын

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

@magalengo Ай бұрын

It has been poorly run for over a decade.

@curt5802 5 күн бұрын

I'm so disappointed in Vanguard lately. They've started to go to the darkside. Shame on them. Shame.

@michaelevans5328 Ай бұрын

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.

@markmorris2517 Ай бұрын

Much appreciated on the updated followup, Rob!

@MikePeaceWoodturning Ай бұрын

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 Ай бұрын

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

@Lukionest Ай бұрын

I’m surprised that you didn’t point out the importance of the last option a client could choose at 7 mins and 20 seconds into the video. If they do nothing, they get nothing. You will get a notice in the mail, but if you don’t act, then your share will be divided between the people who do act.

@MILGEO Ай бұрын

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!

@bobl634 Ай бұрын

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

@richardhead2318 Ай бұрын

That really takes the passive out of passive investing.

@profsteve7653 Ай бұрын

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

@chriscamburn Ай бұрын

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

@carlbook2051 27 күн бұрын

I think it is baloney to pay a third to the attorneys. If there had been any negotiation, a better deal could have been struck. The law firm knows they have a good case and take advantage of the plaintiffs. They wouldn't pursue the case if they weren't fairly certain of a settlement.

@janethunt4037 Ай бұрын

Thank you for explaining this.

@michaelswami Ай бұрын

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

@Carl-iw9sy Ай бұрын

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 Ай бұрын

Same here mate

@rob_berger Ай бұрын

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 Ай бұрын

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

@jimjacobsonmd Ай бұрын

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 Ай бұрын

I'm wondering the same!!!

@rob_berger Ай бұрын

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

@corinnerovetti3674 Ай бұрын

@@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!

@Charlie-f6d3b 28 күн бұрын

@@rob_berger thanks Rob! Keep us posted :)

@canyonoverlook9937 Ай бұрын

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 Ай бұрын

Good question. I don't know.

@hopper4273 Ай бұрын

I already got my check from the Massachusetts settlement

@Charlie-f6d3b 28 күн бұрын

Would anyone know if you received a settlement from Massachusetts would you expect you would be eligible for this class action case as well?

@andreabgc4442 Ай бұрын

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!

@pomme4moi Ай бұрын

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

@carlbook2051 27 күн бұрын

How do you make them whole? Taxes would have been generated at some point as distributions were made. What percentage of the tax generated makes the investors whole?

@gabrielehalloran5771 23 күн бұрын

I had Strategic Equity Investors fund which also gave me a 14% capital gain at the end of the year. It is not a Target date fund, but same thing happened. Any chance I can get involved?

@dantheman6607 21 күн бұрын

Vanguard got rid of most of their own funds in my 401k and now offer JP Morgan funds that are crap 💩 🤬

@returningwhisper Ай бұрын

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

@magalengo Ай бұрын

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

@rob_berger Ай бұрын

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

@hownwen Ай бұрын

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

@rob_berger Ай бұрын

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

@manuvns Ай бұрын

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

@Lukionest Ай бұрын

No. You don’t qualify. The gains that this snafu created stayed within your tax free ROTH account and so there was no tax impact to you.

@chumbawumba1959 Ай бұрын

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

@rob_berger Ай бұрын

Last I heard he was still in prison.

@corinnerovetti3674 Ай бұрын

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

@rob_berger Ай бұрын

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

@davidellison9937 Ай бұрын

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 Ай бұрын

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 Ай бұрын

Agreed.