AUGUSTA, Maine (Legal Newsline) - The state of Maine and Oppenheimer Funds have come to a settlement regarding a state college savings plan, Maine Attorney General Janet Mills has announced.
The Finance Authority of Maine and the Maine Office of Securities announced that they have entered into a settlement with Oppenheimer Funds on behalf of certain NextGen College Investing Plan participants who allegedly experienced heavy losses due to the funds.
"My staff and the Office of Securities continue to work together to protect Maine investors," Mills said. "I appreciate FAME's assistance throughout the investigation and the leading role that FAME and the Securities Administrator played in reaching this favorable result."
As a result of the settlement, a joint investigation by the Attorney General's Office and the Office of Securities that would have examined the management of certain investments made by the company has been cancelled.
Under terms of the settlement, more than $6 million will be divided and distributed among certain account holders based on their exposure to the Oppenheimer Core Bond Fund from Jan. 1, 2008-March 31, 2009.
NextGen is a tax-advantaged investing program created by the Maine Legislature in 1999 as a qualified tuition program under Section 529 of the Internal Revenue Code. All OppenheimerFunds portfolios in NextGen were terminated by FAME in July 2009.