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

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 Malvern investment giant was accused of alleged misleading statements to retail investors in targeted retirement funds.

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.

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

Vanguard, one of the largest mutual fund companies in the United States agreed to pay investors $106 million, CNN reports.

Thousands of New Yorkers forced to pay higher taxes on their retirement savings are set to receive restitution after a $106 million, multi-state settlement was reached with Vanguard Group. The agreement,