An investigation by the S.E.C. and several states found that the company had failed to notify investors of changes in the terms of some funds, leading to higher capital gains taxes.

Regulators penalized Vanguard over allegedly misleading statements after the company made changes to target-date funds that stuck some investors with big tax bills.

Their misstep led to them being charged with not telling investors about the changes that were made, according to CNN.

Investment giant Vanguard failed to properly disclose tax implications to retirement fund investors, triggering unexpected capital gains taxes.

The mutual fund titan harmed investors by failing to disclose risks relating to capital gains distributions in its retail target-date retirement funds, according to the SEC.

Asset management giant Vanguard has agreed to pay more than $100 million to settle charges related to disclosures around target date investment funds, the Securities and Exchange Commission announced Friday.

Vanguard Group will pay more than $106 million to settle US Securities and Exchange Commission allegations that it made misleading statements about capital gains distributions and tax consequences to retail investors who held popular target-date retirement funds in taxable accounts.

The SEC said a lack of notifications by Vanguard drove higher capital gains tax bills for many retail investors.

Vanguard agreed to pay $106.4 million to the Securities and Exchange Commission Friday to settle charges for “misleading statements” connected to its target retirement funds that resulted in higher taxes for retail investors,