Milberg LLP Announces the Filing of a Class Action Lawsuit Against Oppenheimer Rochester National Municipals Fund -- ORNAX, ORNB
14 March 2009 - 10:50AM
Marketwired
The law firm of Milberg LLP has filed a class action lawsuit in the
United States District Court for the District of Colorado on behalf
of all persons who purchased Class A and/or Class B and/or Class C
shares of the Oppenheimer Rochester National Municipals fund (the
"Fund") (NASDAQ: ORNAX) (NASDAQ: ORNBX) (NASDAQ: ORNCX) during the
period from March 13, 2006 to October 21, 2008, inclusive (the
"Class Period"). The action is captioned Bock v. Oppenheimer
Rochester National Municipals, OppenheimerFunds, Inc. et al. (D.
Colo.) and the complaint is available from the Court or can be
viewed at Milberg LLP's website at www.milberg.com
The complaint charges OppenheimerFunds, Inc., OppenheimerFunds
Distributor, Inc., the Fund and certain of its trustees and
officers with violations of Sections 11, 12(a)(2) and 15 of the
Securities Act of 1933, which prohibits materially false and
misleading statements in registration statements and prospectuses
of the kind used to sell shares in the Fund. The Fund invests
primarily in municipal securities.
According to the complaint, during the Class Period the Fund
failed to disclose risk factors associated with the Fund's
investments, including, but not limited to, the Fund's
overconcentration of investments in illiquid securities in
violation of its cap of 15% by investing in illiquid tobacco bonds
and ordinary municipal bonds/notes that could turn illiquid
quickly.
According to the Fund's registration statements and
prospectuses, the Fund would invest no more than 15% of its assets
in illiquid securities, which are securities that do not trade in
an active market and are riskier because the fund may not be able
to sell the securities at the desired price, if at all. Related to
this representation, the Fund stated that its manager,
OppenheimerFunds, would monitor the holdings of illiquid securities
on an ongoing basis to determine whether to sell any holdings to
maintain adequate liquidity. The complaint alleges that contrary to
its representations, the Fund invested 25% of its holdings in
illiquid tobacco bonds. In addition, the Fund failed to disclose in
its Registration Statements that the market for the other municipal
bonds/notes that the Fund invested in could become illiquid based
on price volatility, which could cause the percentage of its
illiquid securities to increase significantly and quickly, as in
fact happened.
In or around October 2008, the Fund filed a prospectus
supplement alerting investors of the true liquidity risks of its
investments -- the same risks that existed in 2006, 2007 and
throughout 2008. By October 2008, however, those risks had already
manifested, dealing substantial losses to investors.
During the Class Period, the Fund lost approximately 60% of its
net asset value. The Fund was crowned "the biggest loser in its
category last year [2008]" by fund analyst Morningstar Inc., as
reported in a January 29, 2009 article by Thomson Reuters PLC,
after losing 49% of its value in 2008 due to, among other reasons,
its investments in tobacco bonds.
If you purchased any class of shares of Oppenheimer Rochester
National Municipals from March 13, 2006 to October 21, 2008, you
may move the court no later than May 12, 2009, and request that the
Court appoint you as lead plaintiff. A lead plaintiff is a
representative party acting on behalf of other class members in
directing the litigation. To be appointed lead plaintiff, the Court
must decide that your claim is typical of the claims of other class
members, and that you will adequately represent the class. Your
share in any recovery will not be enhanced or diminished by the
decision whether or not to serve as a lead plaintiff. You may
retain Milberg LLP, or other attorneys, to serve as your counsel in
this action.
Milberg LLP has been representing individual and institutional
investors for nearly 40 years and serves as lead counsel in federal
and state courts throughout the United States. Please visit the
Milberg website (http://www.milberg.com) for more information about
the firm. If you wish to discuss this matter with us, or have any
questions concerning your rights and interests with regard to this
matter, please contact the following attorneys:
Andrei Rado Ann Marie Vu Milberg LLP One Pennsylvania Plaza,
49th Fl. New York, NY 10119-0165 Phone number: (800) 320-5081
Email: contactus@milberg.com Attorney Advertising. Prior Results Do
Not Guarantee A Similar Outcome.
Oppenheimer Rochester High Yield Municipal FD Class A (MM) (NASDAQ:ORNAX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Oppenheimer Rochester High Yield Municipal FD Class A (MM) (NASDAQ:ORNAX)
Historical Stock Chart
From Jul 2023 to Jul 2024