Oppenheimer Securities Class Action Settlement

The D & O Diary is reporting that two of the three consolidated class actions against the various Oppenheimer Funds have reached a settlement of $100M.  The proposed settlements, awaiting final approval by the court, can be found here ( Download Opp. settlement 1) and here ( Download Opp. Bond Fund Settlement).  The class actions being settled were brought by investors who purchased shares of Oppenheimer with offering documents that allegedly contained misrepresentations.  The investors alleged that the Funds, dispite representation otherwise, engaged in risky investments such as mortgage-backed securities, credit-default swaps and total-return swaps. When the financial crisis hit, these Funds later lost a substantial part of their net asset value,and investors sued under theories of securities fraud.

Additional information regarding the proposed settlement can be found on Oppenheimer's website and at the NYTimes DealBook.

Anne Tucker