State sues over college fund savings losses


Monday, April 13, 2009 | 2 comment(s)

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SALEM (AP) — Oregon officials are seeking $36.2 million in damages from OppenheimerFunds Inc., which managed a fund responsible for steep losses in the Oregon College Savings Plan.

They said in a statement Monday the Oppenheimer Core Bond Fund lost 36 percent of its value last year, but comparable funds in a benchmark index posted a gain of about 5 percent.

The lawsuit filed in Marion County against the Colorado-based OppenheimerFunds includes allegations of negligence, breach of contract and violating state securities laws.

Treasurer Ben Westlund and Attorney General John Kroger say the lawsuit is on behalf of families and aims to recoup their losses.

The board in charge of the plan decided in January to withdraw from the bond fund.

 
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Good wrote on Apr 13, 2009 1:57 PM:

I am glad they will be investigated! All shady practices need to be illuminated.

Mr E wrote on Apr 13, 2009 1:19 PM:

I believe the families deserve to be compensated (if their money was "guaranteed"... if not, tough luck, you should've SAVED YOUR OWN MONEY instead of trusting a state like Oregon to handle it... they can't even get their CHILD SUPPORT system straight), but is this the new America? Put money into risky investments, and when you lose, you expect to still get your money back?

I mean, that's how the corporate world works, but I didn't assume it'd trickle down from there.


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