NM AG says settlement with Oppenheimer reached

AP News
Posted: Dec 15, 2009 11:29 AM

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.

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