OppenheimerFunds’ 529 Plans are facing a rash of suits and complaints regarding alleged mismanagement of its college education funds. The State of Oregon has sued OppenheimerFunds to recover money lost by members of the plan, alleging mismanagement of a nominally conservative bond fund in which Plan funds are invested. According to the Oregon Attorney General’s Office, OppenheimerFunds began investing in highly aggressive and risky investments notwithstanding the conservative nature of the fund. Over the past comparable one-year period, the Oppenheimer Fund fell 36%, while the Barclay’s Aggregate Bond Index, the Index to which the fund compared itself, rose 5% during the same period.
The Attorneys General of Illinois, Main, New Mexico and Texas are also investigating investments made by OppenheimerFunds in their respective 529 Plans. Illinois is also exploring possible legal options.
Investors in these states and other states for whom OppenheimerFunds manages the 529 Plans may have breached their contracts and their fiduciary duties with plan members. This may give rise to legal claims that can be pursued by plan members either in court or in arbitration. OppenheimerFunds have come under recent scrutiny by regulators and have been the subject of arbitrations and lawsuits in matters unrelated to 529 plans.
Page Perry and its attorneys has experience representing investors in arbitrations and in court in cases dealing with securities and investment management firms. The firm has over 125 years of collective experience representing investors in investment-related litigation and arbitration. For further information, please contact us.