Oregon Public Broadcasting

Oregon is suing the college savings plan manager that supervised as much as $36 million in losses to account holders. Rob Manning reports.

Late last year, officials with the Oregon College Savings Plan learned that what was supposed to be a very stable, low-risk, savings plan run by OppenheimerFunds had lost millions.

Now, after three months of investigation, the Oregon Attorney General and State Treasurer are convinced the company should refund that money.

Treasurer, Ben Westlund, says Oppenheimer was supposed to tell the state if it changed investing practices - and it didn’t.

Ben Westlund: “Oppenheimer did not inform Oregon and Oregon families that it had adopted a new, aggressive, highly risky investment strategy. And ultimately that hurt Oregonians’ college savings.”

Oregon is seeking more than $36 million, plus attorney's fees. Oppenheimer defended its practices to the Oregon Legislature last January. 

Four other states are also investigating OppenheimerFunds, after college savings losses.