Oregon Sues Oppenheimer over 529 Plan
In what I believe is the first suit of its kind, the state of Oregon sued Oppenheimer Funds over its (mis)management of the state's 529 Plan. According to the Wall Street Journal , the Oppenheimer Core Bond Fund, which was supposed to be a "conservative" fund, lost 36% of its value in 2008, even though the index it was supposed to follow rose 5.2%. Apparently the "conservative" bond fund bet big on mortgage backed securities and total return swaps.
