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Sparer Law Group Appointed Lead Counsel in Oppenheimer California Municipal Fund Lawsuit
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SAN FRANCISCO, CA--(Marketwire - 11/20/09) - On November 18, 2009, Senior United States District Court Judge John L. Kane appointed Sparer Law Group lead counsel in the securities class-action litigation against the Oppenheimer California Municipal Fund (NASDAQ:OPCAX - News) (NASDAQ:OCABX - News) (NASDAQ:OCACX - News).
Sparer Law Group filed the first class-action suit involving the Oppenheimer California Municipal Fund on February 4, 2009, alleging that Oppenheimer deceived investors about the underlying risk in the fund. The lawsuit alleges that the fund was marketed as a capital preservation municipal fund when, in fact, the fund was invested in highly speculative Dirt Bonds and other Junk Bond investments. Dirt Bonds are based on contracts for land developments that have not yet been built and were especially vulnerable to the recent declines in California's real estate market. The Fund lost over 41% of its net asset value ("NAV") in 2008.
The lawsuit further alleges that Oppenheimer failed to disclose that, because of the Fund's overconcentration in lower rated bonds and bonds not rated by any independent agency, there was a significant risk that more than 25% of its assets were in junk bonds, another violation of the Fund's fundamental investment policies.
"We are pleased that the Court ratified the Lead Plaintiff's selection of Sparer Law Group as lead counsel for the class action," said Alan W. Sparer. "Many other firms filed similar actions against the California Fund. The decision by the Court allows investors and witnesses to know where to go to get information about the lawsuit, and whom to contact if they have information that will help us prosecute the action."
If you have been affected by the practices described in this class action, you do not need to take action at this time. If you wish to participate in the lawsuit as a class member, a notice will be sent to you after the case is certified as a class action -- a process that may take several months. In the interim, if you would like more information about this action, including the complaint and orders, please visit www.sparerlaw.com.
If you are a potential witness having information that will assist us in the prosecution of this matter, please contact us at info@sparerlaw.com or (415) 217-7300.
Contact:
Contact:
Sparer Law Group
(415) 217-7300
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