OppenheimerFunds: The Right Way to Invest?
Investors who thought their money was being safety held in conservative, low-risk mutual funds were unpleasantly surprised when in 2008 two of Oppenheimer’s conservative investments, The Champion Income Fund and the Core Bond Fund lost 78.5% and 35.8% of their values, respectively.
Shareholders outraged by the gross loss sued the funds in 2009. Plaintiffs’ lawyers alleged that Oppenheimer misrepresented the funds by marketing and selling them as a “diversified portfolio” that “[did] not involve undue risk”. In actuality, the funds took gambles on mortgage backed securities involving a much higher risk than what was represented, and which “caused the Fund to crash”.
In order “to eliminate the burden, expense, uncertainty and risk of further litigation,” Oppenheimer officials settled the cases while continuing to deny any wrongdoing.
A hearing to approve the settlement is currently scheduled for September 30 before U.S. District Judge John L. Kane in Denver.
In order to participate in the class action, affected shareholders are required to file a Proof of Claim form.
The period in question for the Champion Income Fund is for funds purchased between January 1, 2006 and December 31, 2008. For information on filing and downloading a claim form, see https://www.oppenheimerchampionsettlement.com//.
The period in question for the Core Bond Fund is for funds purchased between April 30, 2007 and December 31, 2008. For information on filing and downloading a claim form, see https://www.oppenheimercoresettlement.com//.
The deadline to submit claims for either fund is October 30, 2011.
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