Sunday, November 6

Vanguard lawsuit

Being a Vanguard investor and a believer in the company, I was interested in hearing about Samuel A. Alito's alleged conflict of interest in dismissing a lawsuit against Vanguard. From Judge denies having a conflict by L. Stuart Ditzen
A $478,000 judgment, stemming from a business dispute in Massachusetts, was entered against her husband, D. Dev Monga, a petroleum engineer, in favor of a former associate in 1991.

A court-appointed receiver, assigned to collect the judgment, accused Monga of fraudulently transferring money to a retirement account in Vanguard to avoid payment.

Vanguard froze the account. Monga, claiming the retirement funds were legitimate, sued Vanguard. Vanguard found itself in a crossfire of litigation in Massachusetts and Pennsylvania.

When Monga died of cancer in 1996, Maharaj took up the fight.

In 1998, Massachusetts Superior Court Judge Judith Fabricant ruled that the couple, by various efforts to thwart collection of the judgment, had forfeited the right to litigate a claim against Vanguard.

The judge ordered the retirement funds released and barred Maharaj from filing suit against Vanguard anywhere in the nation.

The federal appeals court relied on that ruling in dismissing Maharaj's suit in Philadelphia.
It doesn't look to me as if Vanguard acted improperly.

No comments: