Tuition Trust Authority Joins Putnam LawsuitDec 22, 2003 | Dayton Business Journal The Ohio Tuition Trust Authority is joining a class-action lawsuit against Putnam Investment Management LLC, accusing the Boston-based money manager of committing securities fraud.
Putnam managed $2.8 billion in the authority's college savings program for Ohio residents, but the authority alleges funds were harmed by Putnam's actions. Putnam is the sole manager of the authority's CollegeAdvantage program, a tax-advantaged college savings program for Ohioans.
Putnam agreed to make restitution and change its corporate governance after the U.S. Securities and Exchange Commission found some of its mutual fund managers were involved in "self-dealing" - using inside knowledge to trade on their own mutual funds.
That didn't stop a flurry of civil suits by shareholders and customers, however.
The Ohio Tuition Trust Authority will seek to become the lead plaintiff in the lawsuit.
"As lead plaintiff, the tuition trust will have input on the final outcome of the lawsuit," Jackie Williams, the trust's executive director, said in a release. "We believe that this action is in the best interest of our shareholders."
The authority said last week it will seek other companies to manage its assets, in addition to Putnam.