Settlement In College Savings Plan Suit
New Mexico – The New Mexico Education Trust Board will receive $67 million from OppenheimerFunds to settle an investigation into the firm's management of a college savings program.
The board and Attorney General Gary King approved the settlement on Wednesday.
The $67 million will be distributed to plan participants who invested in a bond fund that suffered big losses because of risky mortgage-backed securities. The fund had been promoted as a conservative investment.
Oppenheimer has made similar settlements with other states over their so-called 529 college saving programs, which are named after a section of federal law that authorized them.
Copyright 2010 The Associated Press.