Oppenheimer funds agreed to pay Illinois more than $77 million in a recent settlement over the losses.
Hoffman blames state treasurer Giannoulias for his handling of the case and argues he shouldn't take credit for the settlement.
But Giannoulias defended it again Monday.
"We're proud of what we've done to take Bright Start from one of the worst programs to one of the top five in the country and out of the thousands of funds that had exorbitant losses in these tough economic times is one of the few funds in the country where families are actually getting some money back," Giannoulias.
In all, the Bright Start fund lost about $150 million. Investors will get back 57 cents on the dollar.