Vanguard $40M Target Retirement Funds Settlement

If you held shares of the Vanguard Investor Target Retirement Funds (Investor TRFs) in 2021 and received capital gains distributions in a taxable account or another relevant account, you may be eligible to claim a portion of a $40,000,000 class action settlement.

The Vanguard Group, Inc. has agreed to pay this amount to settle a class action lawsuit for alleged breaches of fiduciary duties, which resulted in significant capital gains distributions and subsequent tax liabilities for investors.

Who are the class members?

To be part of the settlement class, you:

• Reside in the United States.
• Held shares of the Investor TRFs in taxable accounts or other relevant accounts.
• Received capital gains distributions from the Investor TRFs in 2021.

How much compensation is available?

The amount each class member can claim depends on several factors, including the total number of claims and the amount of capital gains distributions received. The distribution is subject to a pro rata calculation based on the recognized claims of all class members.

• Vanguard Target Retirement 2015 Fund: Weight 0.144
• Vanguard Target Retirement 2020 Fund: Weight 0.608
• Vanguard Target Retirement 2025 Fund: Weight 1.322

Required docs for claims

Claimants need to provide proof of the capital gains distributions they received in 2021 from the Investor TRFs. This includes documentation such as Forms 1099 or equivalent documents from brokers or tax advisors.

How to file a claim

Class members must submit a Proof of Claim and Release Form by February 11, 2025.

The form can be completed online at Strategic Claims Services or mailed to Vanguard Chester Funds Litigation c/o Strategic Claims Services 600 N. Jackson St., Ste. 205, Media, PA 19063.

Claim instructions

1. Obtain the Proof of Claim and Release Form from the official website.
2. Complete the form with accurate information about your capital gains distributions.
3. Attach the necessary documentation, such as Forms 1099.
4. Submit the form online or mail it to the address provided.

$40 Million settlement fund

The settlement fund of $40,000,000 will cover:

• Attorneys' fees up to $13,333,333.33
• Reimbursement of litigation expenses up to $985,000
• Service awards to Plaintiffs up to $240,000

The remaining amount will be distributed to class members based on their recognized claims.

Important dates

• Fairness Hearing: March 11, 2025
• Deadline to File a Claim: February 11, 2025

When is the Vanguard Chester Funds Litigation payout date?

Payments will be distributed after the court grants final approval of the settlement, following the fairness hearing on March 11, 2025.

Why is there a class action settlement?

The lawsuit alleged that Vanguard breached fiduciary duties by causing large capital gains distributions, leading to tax liabilities for investors. Vanguard denies these allegations but agreed to settle to avoid the cost and uncertainty of litigation.