Under the terms of the settlement agreement, the State has specifically acknowledged that OppenheimerFunds does not admit any wrongdoing. The company maintains that it acted lawfully and in good faith in managing the investments in the Bright Start program.
Under that settlement agreement, OppenheimerFunds has agreed to pay the State $77 million which the State intends to distribute to eligible Bright Start participants. OppenheimerFunds agreed to the settlement to resolve the investigation that commenced after the severe market volatility that impacted all investments in 2008, to enable the company to move ahead with its mission to provide high-quality investment management services. As the State has noted, the Bright Start program under the management of OppenheimerFunds has received high ratings from financial commentators in 2009.
The settlement allows both the State and OppenheimerFunds to avoid a potentially lengthy and expensive legal process and instead permits OppenheimerFunds to apply resources to more constructive ends. OFI Private Investments Inc., an OppenheimerFunds subsidiary, remains the program manager for the Bright Start program.
OppenheimerFunds is one of the largest 529 program managers and continues as the manager of the Bright Start program. Long known for its advocacy on behalf of investors, the Company continues to help individuals reach the important goal of saving for a college education by encouraging smart planning and informed choices through its "Keeping College Within Reach" program.
About OppenheimerFunds, Inc.
OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. The Oppenheimer funds managed by OppenheimerFunds, Inc. and a subsidiary have nearly 6 million shareholder accounts.
Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, qualified retirement plans for individuals and corporations, investment management for institutions and sub-advisory services. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and if available, summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting our website at www.oppenheimerfunds.com, or calling us at 1.800.525.7048. Read prospectuses and if available, summary prospectuses, carefully before investing.
About The Bright Start(SM) College Savings Program
The Bright Start(SM) College Savings Program is administered by the State Treasurer of the State of Illinois and distributed by OppenheimerFunds Distributor, Inc. OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc., is the program manager of the Plan. Some states offer favorable tax treatment to their residents only if they invest in the state's own plan. Investors should consider before investing whether their or their designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program and should consult their tax advisor. These securities are neither FDIC insured nor guaranteed and may lose value.
Before investing in the Plan, investors should carefully consider the investment objectives, risks, charges and expenses associated with municipal fund securities. The Program Disclosure Statement and Participation Agreement contain this and other information about the Plan, and may be obtained by visiting www.brightstartsavings.com or www.brightstartadvisor.com or calling 1.877.43.BRIGHT (1.877.432.7444). Investors should read these documents carefully before investing.
SOURCE OppenheimerFunds, Inc.