Court Approves OppenheimerFunds Settlement

The attorneys at Kantrowitz, Goldhamer & Graifman, P.C. are happy to announce that the U.S. District Court for the District of Colorado has approved a settlement in a class action lawsuit involving OppenheimerFunds, Inc. Photo of legal document

Our firm was a counsel of record on the case and helped direct the settlement. The class action lawsuit involved six cases consolidated and settled together, which included defendants Rochester National Municipal Fund, Rochester Fund Municipals, Oppenheimer NJ Municipal Fund, Oppenheimer AMT-Free NY Municipal Fund, Oppenheimer PA Municipal Fund and Oppenheimer AMT-Free Municipal Fund.

The class action lawsuit was filed on behalf of all persons who purchased Class A and/or Class B and/or Class C shares pursuant to various Registration Statements and Prospectuses issued by the Fund beginning with the registration statement and prospectus issued on or about September 27, 2006 through October 21, 2008.

The plaintiffs alleged that trustees and officers with Oppenheimer Funds, Inc. and Oppenheimer Funds Distributor, Inc. violated sections of the Securities Act of 1933, which prohibits false and misleading statements in registration statements and their use to sell shares.

The plaintiffs alleged that contrary to its representations, Oppenheimer Funds, Inc. invested 25 percent of holdings in illiquid tobacco bonds. According to the funds’ statement and prospectuses, it was to invest no more than 15 percent of its assets in illiquid securities. This failure of disclosure caused a substantial loss to many investors.

The plaintiffs and defendants reached a settlement, and the court found that the settlement and stipulations were fair, reasonable, adequate and in the best interests of the class.

How Can I File a Securities Class Action Lawsuit?

Securities class action lawsuits like this occur when an investor has purchased a stock or other security and its value goes down, because the company or its management have given an erroneously positive picture of the company’s finances, business prospects, expected business or financial results.

If you wish to discuss a potential class action case or have any questions concerning this particular settlement, please contact Gary S. Graifman, Esq. toll free at (800) 711-5258.

Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers


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