Fund Manager Settles Suit Over Ill. College Savings Plan
Oppenheimer Funds, Inc. announced Tuesday that it had agreed to pay $77 million to the State of Illinois to settle a lawsuit over the company's management of the state's college savings plan. Illinois had alleged in the lawsuit that the company had invested money invested by families participating in the Bright Start 529 savings plan in riskier investments, resulting in big losses in 2008. Oppenheimer admits no wrongdoing in the settlement, but the money it agreed to pay will be distributed to participants in the program. Oppenheimer had previously settled with New Mexico and Oregon.