WSJ News Exclusive | Vanguard to pay $6 million to investors hit by big tax bills

A Vanguard Group subsidiary will pay nearly $6 million to investors in Massachusetts, who were doomed last year with unexpectedly painful tax bills.

The Massachusetts securities regulator on Wednesday reached a $6.25 million settlement with Vanguard Marketing Corp., a subsidiary of Vanguard. An investigation started this year Turned the Malvern, Pa.-based financial giant into its target-date fund.