The settlement of this federal securities fraud class action lawsuit is on behalf of Vanguard Chester Funds (“Vanguard”) investors who received capital gains distributions in 2021 from Vanguard Investor Target Retirement Funds (“Investor TRFs”) that were held in a Taxable Account or a Tax-Advantaged Account where capital gains from the Investor TRFs in 2021 were distributed outside of the Tax-Advantaged Account.
Vanguard agreed to pay $25,000,000 to resolve this class action lawsuit alleging the company and certain of its officers and/or directors violated federal securities laws by making false or misleading statements.
What’s the status of the Settlement?
On September 8, 2025, the Court granted Preliminary Approval of the Settlement, and on December 2, 2025, Lead Plaintiff filed the Motion for Final Approval. There was a Final Settlement Hearing held on January 6, 2026, and the Court has taken the Motion for Final Approval under review. The settlement website is active and open for claims.
Who can file a claim?
The settlement class includes all persons or entities who:
- Received capital gains distributions in 2021 from Vanguard Investor TRFs that were held in a Taxable Account or a Tax-Advantaged Account where capital gains from the Investor TRFs in 2021 were distributed outside of the Tax-Advantaged Account.
How much is the Settlement Payment?
Pro rata payment: The total settlement fund is $25,000,000. The amount each class member receives will depend on several factors, including:
- The number of valid claims submitted
- The number of shares purchased and sold
- The dates of purchase and sale
- The price paid for the shares and the price received upon sale
How do I file a claim?
The deadline to file a claim is February 3, 2026. To submit a claim and/or to find additional information regarding the terms of the settlement and claim filing process, go to www.strategicclaims.net/case/vanguard/, or contact the claims administrator, Strategic Claims Services, at 1-866-274-4004.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com.