Vanguard Online Gambling Investments Cause A Stir With Investors

Vanguard Group Inc. could soon be having to answer some very difficult questions regarding companies they have invested in. Shareholders filed a lawsuit on Friday against the company.

The shareholders are contending that the company invested their money in online gambling companies. The investments are said to have been done before the American government started cracking down on the industry back in 2006.

Online gambling companies were strong investments before the UIGEA, but have crashed in the aftermath of the Bill. Many of the companies that were invested in left the market, causing their stock prices to plummet.

"The investments by the plaintiffs are not worthless, but they are less than they would have been if the money had not been invested in offshore gambling companies," said Tom Sheridan, an attorney for the two plaintiffs in the case.

The two women that have brought on the class action suit are Marylynn Harsel and Deanna McBrearty. They are making claims under the RICO Act, and the case will not be unprecedented.

On Thursday, American Century Companies Inc. was sued in San Francisco. None of the online companies were named in the lawsuit on Friday, but their names are certain to show up as the lawsuit proceeds.

August 29, 2008
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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