Ohio Attorney General Jim Petro is seeking lead plaintiff status for the Ohio Tuition Trust Authority in a class action lawsuit against Putnam Investments Inc. The attorney general hopes to recover money that Ohio residents invested in Putnam's "College Advantage" plan that may have been lost as a result of rapid-fire trading of Putnam mutual funds, which Putnam failed to prevent. Judy Cunningham, spokeswoman for the authority, said the authority is joining the lawsuit on the advice of Mr. Petro as the best means of looking after the $2.8 billion that its clients have invested in Putnam funds. Ms. Cunningham said the legal moves will have no effect on the business ties between the authority and Putnam.
Putnam spokeswoman Nancy Fisher said Putnam "respects the OTTA decision" to act on behalf of college savers, adding that her company is "grateful that they have decided to continue investing their money with Putnam and we hope to service their investment needs long into the future."