A class action lawsuit was filed in the US District Court of New York this past month that alleges ten members of the Vanguard Group management violated US racketeering laws, causing investors to become owners of illegal gambling companies. The suit is claiming that the plaintiffs suffered significant damages due to the funds experiencing capital losses of over $10 million after executives of the gambling companies were arrested back in 2006. The suit asks for compensatory and punitive damages as well as forfeiture and disgorgement of commissions, fees and profits received by Chief Investment Officer George Sauter, portfolio manager Duane Kelly and eight trustees. Vanguard has issued a statement asserting that the suit is “without merit” and that they will defend themselves “vigorously”.

Leave a Reply

Your email address will not be published.

Related Posts