NEW YORK, Sept. 17, 2009 (GLOBE NEWSWIRE) -- Napoli Bern Ripka LLP, a nationally recognized full service law firm, is investigating fraud claims on behalf of individuals who lost money investing in Oppenheimer Funds (Nasdaq:OPCHX) (Nasdaq:OCHBX) (Nasdaq:OCHCX) (Nasdaq:OCHNX) (Nasdaq:OCHYX).
Many investors purchased the Oppenheimer Funds believing that the Oppenheimer Core Bond Funds were safe and secure. Napoli Bern Ripka is alleging in its actions against Oppenheimer that Oppenheimer's false statements about the fund's holdings caused investors to purchase and/or continue to hold shares in Oppenheimer Champion Income Fund.
The Champion Fund was a typical high-yield bond fund until late 2006 when it altered its investment style and began to significantly increase its risk in the hopes of seeking higher returns, including by dramatically increasing its use of structured products and derivative instruments, purchasing highly unstable mortgage-related and corporate bonds, and significantly increasing its leverage exposure. Allegedly, Oppenheimer concealed that the Champion Fund had increased its exposure with these excessively risky bets in the hopes of higher returns, such that investors remained unaware of these additional risk exposures.
"Investor's were blind-sided by the risks associated with the Oppenheimer Fund," said Paul Napoli, managing partner of Napoli Bern Ripka LLP. "Many of these investors lost money thinking their assets were protected." Had investors known the funds were concentrated with high-risk, mortgage-backed securities, they would not have invested, in the fund, Napoli explained.
Oppenheimer invested more than 25 percent of the fund's assets in high-risk mortgage-backed securities. According to the fund's policies, this move required a majority vote from shareholders, something Oppenheimer failed to obtain, violating state laws.
Overall, the fund experienced an almost $2 billion drop in assets in 15 months. Compared to other high-yield funds that averaged a drop of 32 percent in 2008, the Champion Fund experienced an 82 percent drop in value.
If you lost any money investing in any of the above-listed Oppenheimer Funds please contact Napoli Bern Ripka LLP at (212) 267-3700 x 115 or visit our website at www.napolibern.com
Napoli Bern Ripka, LLP has offices in New York and around the country. The firm has a nationally recognized securities arbitration that focuses on individual and corporate investors. Among recent successes, Napoli Bern Ripka, LLP has negotiated hundreds of thousands of dollars of settlements against major brokerage firms and has successfully tried scores of arbitrations around the country on behalf of individual investors. Most law firms require a minimum loss of $100,000 to take a case against Oppenheimer, but Napoli Bern Ripka, LLP is interested in all cases of any size.