Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased or Held Shares of the Oppenheimer Rochester Na
April 24 2009 - 1:38PM
Marketwired
Dyer & Berens LLP (www.DyerBerens.com) today announced that it
has filed a class action lawsuit in the United States District
Court for the District of Colorado on behalf of certain investors
of Oppenheimer Rochester National Municipals ("Rochester Fund" or
the "Fund") (NASDAQ: ORNAX) (NASDAQ: ORNBX) (NASDAQ: ORNCX) offered
by OppenheimerFunds, Inc. ("OppenheimerFunds") who purchased or
held shares of the Fund in connection with its November 28, 2005,
September 27, 2006, March 9, 2007 and November 28, 2007 offerings
(the "Offerings"). The complaint charges OppenheimerFunds, the
Rochester Fund and certain of its officers, directors and trustees
with violations of federal securities laws.
If you wish to serve as a lead plaintiff, you must move the
Court no later than May 12, 2009. If you wish to discuss this
action or have any questions concerning this notice or your rights
or interests, please contact plaintiff's counsel, Jeffrey A.
Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email
jeff@dyerberens.com. Any member of the putative class may move the
Court to serve as lead plaintiff through counsel of their choice,
or may choose to do nothing and remain an absent class member.
The complaint alleges that defendants marketed the Fund as being
safer than disclosed in the Offerings while significantly
increasing the Fund's leverage exposure and concealing risky
investments in inverse floaters, revenue-type municipal securities
including tobacco bonds, land secured or "dirt bonds" and airport
bonds in hopes of higher returns. Beginning in February 2008, the
Fund's shares declined when the auction-rate securities market,
which had provided important debt financing for municipal bonds,
froze. Defendants continued to conceal the Fund's exposure to these
excessively risky investments until the time period between
September 2008 and March 2009, when they began to disclose the
serious deterioration of the Fund's portfolio. As a result, the
Rochester Fund was one of the worst performers in the municipal
bond fund market for 2008, losing 49% of its value for the
year.
According to the complaint, the true facts which were omitted
from the Registration Statements/Prospectuses issued in connection
with the Offerings were as follows: (a) the Fund was no longer
adhering to its objective of seeking high current income exempt
from federal taxation, but in an effort to achieve greater yields
was pursuing riskier instruments; (b) the extent of the Fund's
liquidity risk due to the illiquid nature of a large portion of the
Fund's portfolios, including the Fund's investment in tobacco
bonds; (c) the extent to which the Fund's portfolio contained
unrated securities; (d) the Fund's internal controls were
inadequate to prevent defendants from taking on excessive risk or
to prevent them from improperly evaluating the credit quality of
unrated securities; (e) the extent of the Fund's risk exposure to
derivatives and other high-risk instruments such as inverse
floaters was concealed; and (f) the extent of the Fund's leverage
exposure was misstated.
Plaintiff seeks to recover damages on behalf of Rochester Fund
investors. The plaintiff is represented by Dyer & Berens LLP,
which has expertise in prosecuting investor class actions involving
financial fraud. The firm's extensive experience in securities
litigation, particularly in cases brought under the Private
Securities Litigation Reform Act, has contributed to the recovery
of hundreds of millions of dollars for aggrieved investors. For
more information about the firm, please go to
www.DyerBerens.com.
Contact: Jeffrey A. Berens Dyer & Berens LLP 682 Grant
Street Denver, CO 80203 Tel: (888) 300-3362 or (303) 861-1764
Email: Email Contact Website: www.DyerBerens.com
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