Vanguard Group, the largest U.S. manager of mutual fund assets, agreed to pay $40 million to settle a lawsuit claiming it stuck ordinary investors in its popular target-date retirement funds with surprisingly large tax bills.

The lawsuit said the investment management giant’s decision to open some of its target date retirement funds to smaller shareholders led to surprisingly large tax bills.

For advisors who still have clients invested in mutual funds directly through Vanguard’s legacy transfer agent system, that company dropped some big news: That option is closing at the end of 2025. But there may not be very many advisors using that route to invest client assets anymore.