Shareholders in Vanguard's and American Century's funds are suing the firms over investments in illegal offshore gambling operations. Reuters reports that a the suit filed Friday in U.S. District court, claims that shareholders in the funds suffered significant losses when the government arrested the principals of said gambling establishments. No amount was specified in the lawsuit, although Tom Sheridan, an attorney for the plaintiffs estimated the losses to be over $10 million. Last Thursday, a similar suit was filed against American Century Funds. The U.S. began cracking down on offshore betting companies in 2006. A spokeswoman for Vanguard told the wire service that the company had not yet been served the lawsuit so no comment was available.  

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