The Vanguard Group announced that a lawsuit alleging that several mutual fund companies failed to collect or claim settlement money on behalf of investors has been dismissed, according to Reuters.
Two law firms, Baron & Budd PC of Dallas and Cauley Bowman Carney & Williams LLP of Little Rock, Arkansas, filed charges in federal courts across the country in January that the funds violated their fiduciary duty to investors by not collecting more than $2 billion awarded in class-action settlements. The case was dismissed in U.S. District Court in Eastern District of Pennsylvania on Monday, according to the court notice, provided by Vanguard.
The status of 42 other class-action lawsuits against fund companies was unclear. In the case of Vanguard, the complaints were filed against the firm and some of its directors, as well as managers of American Funds and GMO Funds. When the complaints were lodged, the fund companies concerned had said the case was without merit.