Settlement In 529 Plan Case

New Mexico – New Mexico Attorney General Gary King says a settlement has been reached with OppenheimerFunds, Inc. to resolve an investigation into the company's management of the state's 529 college savings programs.

Under terms of the settlement announced Monday, King says Oppenheimer agrees to pay New Mexico $67.31 million all of which will be distributed to 529 plan participants affected by the performance of Oppenheimer Core Bond Fund.

Oppenheimer's affiliate, OFI Private Investments, remains the program manager for the state's two 529 college savings programs the Education Plan and Scholar's Edge.

The settlement requires final approval from the Education Trust Board before it becomes effective.

Copyright 2009 The Associated Press.