Vanguard resolves long-running whistleblower, broker complaints

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Vanguard resolves long-running whistleblower, broker complaints
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Payments end firing complaints at Malvern investment giant Vanguard over 'defamatory' report, 'whistleblower' termination.

Vanguard Group, the Malvern-based investment giant that made low-fee investment funds popular for tens of millions of Americans, has concluded a pair of years-old disputes with former employees who said they had been improperly terminated.

“While we are limited in what we can say on legal proceedings, after 10 years, we are happy to have put this matter behind us and avoided the time and expense of continued litigation,” a VanguardThe two sides declined to comment on how much Vanguard paid to end the case.Vanguard changed its financial and tax practices and paid significantly more taxes in response to his complaints to the agencies about the company’s practices.

The appeals court allowed Danon to reinstate a part of his claim, and in early 2023 U.S. District Judge Berle Schiller told the two sides to try to work out a settlement in mediation before going to trial. In June lawyers for Vanguard and Danon told the judge they were working toward an agreement, then stopped filing required monthly reports. Vanguard confirmed the case was concluded — but gave no details — in a brief Sept. 30 federal court filing in Philadelphia.

Danon filed a complaint against the IRS in U.S. Tax Court in 2018, calling on the agency to pay him a significant percentage of what he contends has been a larger federal tax payout following his disclosures to the agency. But the court also stressed that Danon has a simpler path: he could demand the SEC directly document what it did with his information. The SEC and Danon’s lawyers would not confirm what steps they have taken since the court issued its order in January.In Capece’s case, FINRA arbitrators “denied the request for monetary damages” and did not explicitly find that the company had defamed Capece, Vanguard noted in a statement this week to The Inquirer.

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