Vanguard, one of the largest mutual fund companies in the United States agreed to pay investors $106 million, CNN reports.

An investigation by the S.E.C. and several states found that the company had failed to notify investors of changes in the terms of some funds, leading to higher capital gains taxes.

The SEC said a lack of notifications by Vanguard drove higher capital gains tax bills for many retail investors.

Vanguard Group will pay more than $106 million to settle US Securities and Exchange Commission allegations that it made misleading statements about capital gains distributions and tax consequences to retail investors who held popular target-date retirement funds in taxable accounts.

The alleged violations stem from a 2020 change where Vanguard lowered the minimum investment requirement for its institutional target date funds. The SEC order found that the chan

The Malvern investment giant was accused of alleged misleading statements to retail investors in targeted retirement funds.