OppenheimerFunds agreed to pay $100 million to settle allegations of mismanagement

Massachusetts Mutual Life Insurance Co.’s OppenheimerFunds Inc. agreed to pay $100 million to settle allegations of mismanagement brought by mutual fund investors, according to a Bloomberg report based on federal court documents in Denver.

A hearing to approve the settlement with holders of Oppenheimer Champion and Core Bond Fund shares was scheduled for Sept. 30 before U.S. District Judge John L. Kane, the court announced in a statement today.

Fund officials, according to Bloomberg, settled the cases “to eliminate the burden, expense, uncertainty and risk of further litigation,’’ and deny any wrongdoing, their lawyers said in court documents.

The funds were sued in 2009 by participants who believed they were holding low-risk, conservative investments, and lost money.

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