PORTLAND, Ore. (CN) - OppenheimerFunds mismanaged and misrepresented its Oppenheimer Core Bond Fund, which is part of the Oregon College Savings Plan, causing the plan's value to plummet more than $36 million, according to a lawsuit filed by Oregon Attorney General John Kroger.
After a three-month investigation, Kroger says he learned that OppenheimerFunds misrepresented high-risk hedge-fund investments as suitable for investors with a one- to three-year horizon before drawing on their savings.
Oregon is the first state to take legal action against Colorado-based OppenheimerFunds Inc., manager of the Oppenheimer Core Bond Fund.
Illinois, Texas and Maine all had more than 30 percent of their 529 assets invested in the Core Bond Fund and are considering legal action against the company.
Kroger filed suit in Marion County Court.
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