By Jim Scarantino | New Mexico Watchdog
SANTA FE — A unanimous ruling by the New Mexico Court of Appeals could put the state on the hook for most of $175 million in alleged college savings plan losses.
The court ruled that a class action on behalf of families who had sustained losses in the state-approved plans could seek recovery against the state itself.
New Mexico’s college savings plans were the worst in the nation.
Instead of putting funds into stable conservative bonds, the manager selected by the state, the Oppenheimer group, sank millions into high risk ventures that sustained massive losses. Families that had counted on the state’s plans to help cover the costs of college saw their investments devastated.
The class action comes on the heals of a $63 million settlement between Oppenheimer and the Attorney General.
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