March 4, 2009
Labaton Sucharow Files Class Action Lawsuit Against Oppenheimer Champion Income Fund
NEW YORK (March 4, 2009) – Labaton Sucharow LLP filed a class action lawsuit on March 4, 2009 in the United States District Court for the Southern District of New York, on behalf of all purchasers or holders of the Oppenheimer Champion Income Fund (“Champion Fund”) (OPCHX, OCHBX, OCHCX, OCHNX, OCHYX) between August 7, 2006 and December 9, 2008, inclusive (the “Class Period”). The lawsuit was filed against OppenheimerFunds, Inc., Oppenheimer Champion Income Fund (“Champion Fund”), OppenheimerFunds Distributor, Inc. and certain officers and trustees (“Defendants”).
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.labaton.com/en/cases/newly-filed-cases.cfm
This action seeks to pursue remedies under the Securities Act of 1933 (the “Securities Act”), the Securities Exchange Act of 1934 (the “Exchange Act”), and the Investment Company Act of 1940 (“Investment Company Act”). The Complaint alleges as follows: due to defendants’ positive, but false, statements, investors purchased and/or continued 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 derivative instruments, purchasing highly unstable mortgage-related and corporate bonds, and significantly increasing its leverage exposure. Defendants 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.
According to the Complaint, the true facts which were omitted from the Registration Statements/Prospectuses were known by the defendants but concealed from the investing public during the Class Period. The Champion Fund was no longer adhering to its objective to not take on any undue risk, but in an effort to achieve greater yields was pursuing riskier instruments and the Champion Fund’s internal controls were inadequate to prevent defendants from taking on excessive risk. The Champion Fund’s liquidity risk was concealed, its risk exposure to derivatives and other high risk instruments was concealed, and its leverage exposure was misstated.
Plaintiff is represented by the law firm of Labaton Sucharow LLP. Labaton Sucharow is one of the country’s premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. More information about Labaton Sucharow is available at www.labaton.com.
If you bought Champion Income Fund securities between August 7, 2006 and December 9, 2008, inclusive, you may move to serve as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the United States District Court for the Southern District of New York no later than April 14, 2009. A Lead Plaintiff is a court-appointed representative for absent class members. You do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about the lawsuit, you may contact one of our representatives or Alan I. Ellman, Esq. of Labaton Sucharow, at (800) 321-0476 or (212) 907-0700, or via email at firstname.lastname@example.org.
More information about Labaton Sucharow is available at www.labaton.com.