OppenheimerFunds Inc. says it has reached an agreement with Oregon officials to settle a lawsuit filed over the company’s management of the state’s 529 college savings programs.
Under the terms of the proposed agreement, OFI says it does not admit any wrongdoing but agrees to pay the state $20 million, which Oregon plans to distribute to participants in the 529 plans.
Funds will be distributed to eligible plan participants early next year, OFI says. Further details on the settlement’s timing and the state’s plans for distributing settlement funds will be released after the settlement is completed, it adds.
“OFI is one of the largest and most successful 529 program managers and remains committed to its 529 plan management business,” the company said in a statement.
The settlement allows both Oregon and OFI “to avoid a lengthy and expensive legal process and to apply resources to more constructive ends,” the company added.