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Judge Gives Final OK To College Savings Settlement

A settlement in which the state will pay $3.75 million to families because of alleged mismanagement of college savings plans now has court approval.

The Santa Fe New Mexican reports that District Judge Glenn Ellington on Wednesday gave final approval to the 2013 settlement in the class-action case resulting from families' investment losses in 2008.

Oppenheimer Funds previously paid $67.3 million to the state to partially reimburse account holders for the losses they suffered. The settlement allows families to pursue additional recovery of losses directly from Oppenheimer.

The suit filed in 2009 alleged that investments for parents who wanted conservative portfolios were instead placed by Oppenheimer and the New Mexico Education Trust Board in risky investments such as mortgage-backed securities.

Information from: Santa Fe New Mexican. 

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