Contact Information: Contact: Jeffrey S. Abraham Jack Fruchter Abraham, Fruchter & Twersky, LLP One Penn Plaza, Suite 2805 New York, New York 10119 Tel.: (212) 279-5050
Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against Oppenheimer Funds Regarding Its Rochester Fund Municipals
| Source: Abraham, Fruchter & Twersky, LLP
NEW YORK, NY--(Marketwire - February 25, 2009) - Abraham, Fruchter & Twersky, LLP filed a class
action lawsuit in the United States District Court for the Eastern District
of New York against Oppenheimer Funds, Inc. ("Oppenheimer") on behalf of
purchasers of the Rochester Fund Municipals ("Rochester" or the "Fund")
(NASDAQ : RMUNX ) (NASDAQ : RMUBX ) (NASDAQ : RMUCX ) from February 26, 2006
through October 21, 2008 (the "Class Period").
The complaint charges Oppenheimer, the Fund and certain of its Trustees
with violations of the Securities Act of 1933. The suit claims
Oppenheimer, which runs the Fund, misled investors about the risks of
investing in the Fund, resulting in an over 30% decline in the Fund's
value. The lawsuit identifies the following funds as affected: A Shares
(RMUNX), B Shares (RMUBX) and C Shares (RMUCX).
The complaint alleges that the Registration Statements through which shares
of the Fund were sold failed to disclose that under certain circumstances
Trusts which contain Inverse Floaters, such as those employed by the Fund,
may be put to the Fund for repayment of principal. This caused the Trusts
to be collapsed and required the Fund to repay the principal amount of the
tendered securities. In order to do so, the Fund was forced to sell
securities from its portfolio regardless of market conditions and accept
prices far below the values at which the bonds were carried on its books.
This risk factor was always present wherever inverse floaters were
employed. However, no disclosure was made in any of the Prospectuses filed
as part of Registration Statements with respect to the sale of the Fund's
shares. Because of this lack of disclosure, the Fund's shares traded at
artificially inflated prices during the Class Period.
On October 21, 2008, Rochester filed a Prospectus Supplement which
disclosed the relevant risks associated with the Fund's investment in
Inverse Floaters. As of October 21, 2008, the Fund's shares traded at
$12.35 per share, down from $18.00 per share at the beginning of the year.
Plaintiff seeks to recover damages on behalf of all those who purchased
shares of Rochester Fund Municipals from February 26, 2006 through October
21, 2008. The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP
which has extensive experience in securities class action cases, having
been ranked among the leading class action law firms in terms of recoveries
achieved by a survey of class action law firms conducted by Institutional
Shareholder Services.
If you would like to discuss this action or if you have any questions
concerning this notice or your rights as a potential class member or lead
plaintiff, you may contact: Jeffrey Abraham or Jack Fruchter of Abraham,
Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at
jabraham@aftlaw.com or jfruchter@aftlaw.com, respectively. If you wish to
serve as lead plaintiff, you must move the Court no later than sixty days
from today. Any member of the proposed class may move the Court to serve as
lead plaintiff through counsel of their choice, or may choose to do nothing
and remain a member of the proposed class.