Recently, our stockbroker fraud law firm reported on the $100 million class action settlement that Massachusetts Mutual Life Insurance Co.’s OppenheimerFunds Inc. has agreed to pay to settle allegations that it did not properly manage its Oppenheimer Core Bond Fund (OPIGX) and Oppenheimer Champion Fund (OCHBX, OPCHX and OCHCX). The securities case was brought by investors who claimed that the offering documents and sales pitches misrepresented the risks involved in credit default swaps (CDS), mortgage-backed securities (MBS), and other complex securitized financial instruments. Instead, they contend that the funds were marketed and sold as high yielding, diversified, and conservative investments.
The Champion Fund would go on to lose about 80% of its value in 2008. (55% was lost just in November of that year.) The Core Bond Fund lost 33%. (Compare that to the rest of its peer group, which lost 5%.) As a result, Champion Fund investors sustained extremely significant financial losses and Core Bond investors also suffered.
The class action settlement distributes the $100 million between the two groups of mutual fund investors. While Core Bond investors will get $47.5 million, Champion investors are slated to receive $52.5 million. The Boards of Trustees for the funds have already given their approval. However, even in settling, OppenheimerFunds is not admitting to any wrongdoing. Its spokesperson has said that the proposed settlement is in the best interests of its Funds’ shareholders.
Opting Out of the Oppenheimer Funds Class Action
Our securities fraud lawyers would like to remind investors that in a class action case such as this one, the amount each investor will receive is likely substantially less than what could be recovered if one were to file his/her own FINRA arbitration claim or securities fraud lawsuit. Considering that thousands invested in the OppenheimerFunds, Champion Fund investors are expected to get about 3 cents on the dollar, while Core Bond Fund investors will get about 12 cents on the dollar.
If you are an investor who wants to file your own securities fraud case against OppenheimerFunds, you must opt out of the class before August 31, 2011. To do this you have to send a written exclusion to class counsel and this must be postmarked no later than the deadline. If you don’t opt out and the settlement goes into effect, you will get a check for your share and you will not be allowed to file a securities fraud lawsuit or an arbitration claim.
Our securities fraud lawyers know how scary it can be to go it alone, but it is the best way to increase your chances of recovering as much of your financial losses as possible. Our stockbroker fraud law firm would be happy to offer you a free case evaluation.
OppenheimerFunds Settles Mismanagement Case for $100 Million, Bloomberg Businessweek, July 26, 2011
OppenheimerFunds to pay $100 million to settle mismanagement case, Denver Post, July 27, 2011
More Blog Posts:
Mortgage-Backed Securities Lawsuit Against Bank of America’s Merrill Lynch Now a Class Action Case, Stockbroker Fraud Blog, June 25, 2011
Class Members of Charles Schwab Corporation Securities Litigation Can Still Opt Out to File Individual Securities Claim, Stockbroker Fraud Blog, December 6, 2010
Wells Fargo Settles Mortgage-Backed Securities Class Action Case for $125M, Institutional Investor Securities Blog, July 19, 2011