According to a press release an investigation on behalf of participants in the Illinois Bright Start College Savings Plan concerning possible breaches of fiduciary duty by the OppenheimerFunds, Inc., OppenheimerFunds Private Investments, Inc., and OppenheimerFunds Distributor, Inc. was announced.

According to the press release the investigation by a law firm focuses on financial losses suffered by participants in the Illinois Bright Start College Savings Plan, which was managed by OppenheimerFunds, Inc., OppenheimerFunds Private Investments, Inc., and OppenheimerFunds Distributor, Inc and invested heavily in leveraged and risky Oppenheimer 'fixed income' funds.

The investigation of the law firm indicates that Oppenheimer Funds, Inc., Oppenheimer Funds Private Investments, Inc., and Oppenheimer Funds Distributor, Inc deviated significantly from its chosen benchmarks, investing styles, and risk profiles, with no offsetting returns. Among other misconduct, so the investigation, OppenheimerFunds, Inc., OppenheimerFunds Private Investments, Inc., and OppenheimerFunds Distributor, Inc made increasingly large bets on mortgage-backed securities and engaged in excessive leverage in its supposedly fixed income funds and this caused millions of dollars in losses. As one analyst noted: 'It's unacceptable that (Oppenheimer) hasn't more clearly communicated the fund's exposure to various sectors and risks in shareholder reports and web commentary.'