SALEM, OR - Some Oregonians who lost money in their child’s college savings fund will get a portion of it back. The state of Oregon today announced a $20 million settlement in a lawsuit against OppenheimerFunds. The state accused the firm that managed the Oregon College Savings Plan of making reckless investments that led to huge losses, even in funds that were supposed to be low-risk. Oregon Treasurer Ben Westlund said Oppenheimer violated the trust of parents.
Westlund: “When we place faith in these large investment houses, we expect certain performance and fiduciary responsibility on their part that they failed to perform.”
The $20 million will be split among roughly 45,000 accountholders in the Core Bond Fund of the College Savings Plan. The average payment will be about $440, but specific amounts will be based on how much money each family invested and for how long. The Oregon Attorney General’s office says the money will be deposited into accounts by the end of February.
Copyright 2009 Northwest News Network
On the Web: Oregon College Savings Plan
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