Another law firm just slung a class action lawsuit at OppenheimerFunds. On Wednesday Finkelstein & Krinsk unveiled a complaint aroused by the Oppenheimer Pennsylvania Municipal Fund. The San Diego, California-based law firm accuses the Manhattan fund firm of having "disregarded ... capital preservation" and misleading investors about it.
OppFunds faces similar suits involving its Champion Income, Core Bond, Rochester Fund Municipals and Rochester National Municipals funds (see MFWire, 2/13/2009, 3/5/2009, 3/12/2009, 4/14/2009 and 4/16/2009).
Company Press Release
SAN DIEGO, April 29 /PRNewswire/ -- A class action lawsuit has been commenced in the United States District Court for the Western District of Pennsylvania on behalf of persons and entities that purchased shares of the Oppenheimer Pennsylvania Municipal Fund (the "Pennsylvania Fund" or "Fund") between November 28, 2005 and November 28, 2008 ("Class Period").
The complaint alleges that the Pennsylvania Fund, Oppenheimer Funds and certain of its officers and trustees violated the Securities Act of 1933 and the Investment Company Act of 1940 by departing from the stated investment premise and otherwise injured Fund shareholders. The Pennsylvania Fund is a municipal bond fund yielding interest income exempt from federal and Pennsylvania income taxes. The complaint alleges that during the Class Period, the Registration Statements and Prospectuses misled investors about the Fund's investment objectives, policies and the underlying risk by characterizing its investments as consistent with preservation of capital. In fact, the Fund lost over 33% of its net asset value ("NAV") in 2008 compared with an average peer group loss of approximately 9.5%. The complaint alleges that capital preservation was disregarded as the Fund significantly increased exposure through excessively risky strategies not properly disclosed to investors.
Specifically, the overarching principle of capital preservation was compromised by concentrating large positions in low rated bonds, bonds not reviewed by an independent rating agency and by portfolio concentration in high risk securities including, Tobacco Bonds, Dirt Bonds, and Inverse Floaters.
Plaintiff is seeking to recover damages on behalf of all investors in Pennsylvania who purchased or held shares between November 28, 2005 and November 28, 2008 and is represented by Finkelstein & Krinsk LLP, the highly regarded law firm litigating cases throughout the country.
As a member of the Class described above, you may, not later than June 29, 2009, move the Court to serve as lead plaintiff for the Class or choose to do nothing and remain an absent class member. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Your ability to share in any recovery is not, however, affected by the decision to serve as a lead plaintiff. If you want to discuss this matter or your rights or interests, please contact our office at 877.493.5366, by fax to 619.238.5425, or by writing Finkelstein & Krinsk, LLP, 501 West Broadway, Suite 1250, San Diego, CA, 92101, or via email at jrk@classaction.com
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