In re Oppenheimer Champion Fund Securities Fraud Class Action and In re Core Bond Fund
The relationship between an investor and an asset manager is based on trust and transparency. So when investors find out that their conservative investments were hedging on undisclosed high risk bets, resulting to substantial losses, they demand accountability and resolution. And they turn to Labaton Sucharow for guidance.
In 2011, as lead counsel, we obtained a total of $100 million in settlements for two related securities class actions against Oppenheimer Funds and certain officers and trustees of two of its funds. The allegations involved materially false or misleading statements and omissions to the investing public regarding the investment profile and objectives of the funds. Marketing material and the prospectus portrayed the funds as conservative. However, under the alleged actions of the Fund's officers, the advertised conservative Funds were concentrated in undisclosed risky investments.
Cases against mutual funds are rare and can be difficult to prove, but with steadfast determination and top-notch litigation skills, we obtained significant recoveries on behalf of our investor clients.