Investors Sue Vanguard Over Offshore Gambling Cos.

Law360, New York (April 8, 2010, 5:42 PM EDT) -- Investors in funds controlled by The Vanguard Group Inc. have lodged a proposed securities class action alleging the company, its affiliates and company executives invested their money in a series of illegal offshore gambling businesses that were the subject of a law enforcement crackdown.

Marylynn Hartsel and Deanna Parker said in a lawsuit filed Wednesday in the Delaware Chancery Court that the unlawful investments were "virtually wiped out" when law enforcement officials stepped up their efforts against the gambling entities, Sportingbet PLC, PartyGaming PLC, bwin Interactive...
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