Vanguard has agreed to pay over $100 million to settle charges related to improper disclosures about its target date investment funds.

The Securities and Exchange Commission (SEC) found that Vanguard failed to properly disclose the tax implications when it lowered the minimum investment requirement for its institutional target date funds in 2020.

This led to redemptions that triggered taxable distributions for remaining shareholders, impacting their investments.

Vanguard will pay $106.41 million to affected investors, though it did not admit or deny the SEC’s findings, CNBC has reported.

The settlement is in addition to a $40 million class action payout.

Written by B.C. Begley