Investors Wanting to Opt Out of Oppenheimer Funds Settlement Must Do So Before August 31, 2011
We recently reported that Oppenheimer Funds had agreed to pay $100 million to settle allegations that it mismanaged its mutual funds. The case which is filed in Denver, Colorado involves investors in Oppenheimer Champion Fund (OCHBX, OPCHX and OCHCX) and the Oppenheimer Core Bond Fund (OPIGX). A hearing to approve the settlement is set for September 30, 2011.
These funds were marketed and sold to investors under the guise of being diversified, higher yielding, conservative investments, suitable for retirement plan portfolios, when in fact they were extremely risky products that were loaded with illiquid derivatives, mortgage backed securities (MBS) and credit default swaps (CDS). Everything from the prospectus to the marketing materials to the sales pitches by the brokers selling these funds portrayed them to be no more risky than the average high income fund.
Investors in the Champion Funds who were misled into believing they were safely invested in conservative high income funds, have suffered catastrophic losses. The Oppenheimer Champion Fund plummeted 55% in the month of November 2008 alone and the Oppenheimer Core Bond Fund shed 35% of its value in 2008 and another 10% in the first three (3) months of 2009.
Unfortunately, the settlement of the class action involving these funds which is pending will only provide a piddly settlement amount of roughly three (3) cents on the dollar to the Oppenheimer victims. In order to not be included in the class, investors wanting to file individual arbitration claims or lawsuits seeking a potentially greater return must opt out of the class before August 31, 2011.
In order to learn more about the Oppenheimer opt out date deadline or to discuss your losses, please contact our securities law firm immediately at 1-800-259-9010 for a confidential consultation.