Openheimer AMT free municipals fund hit with a class action lawsuit over false and misleading statement to sell shares in fund

The class action lawsuit was filed by renowned law firm Millberg LLP . The suit 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 prohibit materially false and misleading statements in registration statements and prospectuses of the kind used to sell shares in the Fund.

The lawsuit was filed on behalf of all persons who purchased Class A and/or Class B and/or Class C shares of the Oppenheimer AMT-Free Municipals Fund. during the period from May 13, 2006 to October 21, 2008, inclusive (the “Class Period”).

The lawsuit alleges :

  • The company during the Class Period the Fund failed to disclose risk factors associated with the Fund’s investments.
  • On October 21, 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.
  • Hence the AMT-Free Fund was among the worst performing in its peer group.
  • After the end of the Class Period, the AMT-Free Fund belatedly disclosed liabilities and residual exposure from the inverse floaters, which investors were not previously told about.
  • The massive liabilities and exposure of more than $500 million were not disclosed in any Registration Statements issued during the Class Period.

If anybody purchased any class of shares of Oppenheimer AMT-Free Municipals Fund from May 13, 2006 to October 21, 2008, you may move the court no later than July 13, 2009, and request that the Court appoint you as lead plaintiff.

You can also be the representative party acting on behalf of other class members in directing the litigation. But the Court will decide that the lead plaintiff’s claim is typical of the claims of other class members, and that you will adequately represent the class.

The complaint is available from the Court or can be viewed at Milberg LLP’s website at www.milberg.com [www.milberg.com] .

If you wish to discuss this matter with Milberg LLP, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

Andrei Rado, Esq.
Anne Marie Vu, Esq.
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: contactus@milberg.com

Source: MarketWatch

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