Kantrowitz, Goldhamer & Graifman, P.C. Files Class Action Lawsuit Against Oppenheimer Rochester National Municipals Fund (NASDAQ
March 30 2009 - 5:18PM
Marketwired
The law firm of Kantrowitz, Goldhamer & Graifman, P.C.,
announced today that it has filed a class action complaint in the
U.S. District Court for the District of Colorado against
Oppenheimer Rochester National Municipals Fund (the "Fund")
(NASDAQ: ORNAX) (NASDAQ: ORNBX) (NASDAQ: ORNCX) on behalf of all
persons who purchased Class A and/or Class B and/or Class C shares
of the Fund pursuant to various Registration Statements and
Prospectuses issued by the Fund beginning with the registration
statement and prospectus issued on or about September 27, 2006 and
through disclosure of the truth about the Fund on October 21, 2008,
inclusive (the "Class Period").
The complaint alleges that the Fund and certain of its trustees
and officers and also Oppenheimer Funds, Inc., and Oppenheimer
Funds Distributor, Inc. violated sections of the Securities Act of
1933, which prohibits materially false and misleading statements in
registration statements and prospectuses of the kind used to sell
shares in The Fund.
According to the complaint, during the Class Period the Fund
concealed various risks in the way the Fund's investments,
including, but not limited to, risks associated with the Fund's use
ofderivative type instruments called "inverse floaters" and the
Fund's over concentration of investments in illiquid securities in
violation of its cap of 15% in such securities by investing an
inordinate amount of its portfolio in illiquid tobacco bonds and
ordinary municipal bonds/notes that could turn illiquid
quickly.
According to the Fund's registration statement and prospectuses,
the Fund would invest no more than 15% of its assets in illiquid
securities, which are securities that do not trade in any active
market and are riskier because the Fund may not be able to sell the
securities at the desired price, if at all. The complaint alleges
that contrary to its representations, the Fund invested 25% of its
holdings in illiquid tobacco bonds. In addition, the Fund failed to
disclose that as much as 20% of its assets were invested in
derivative instruments known as "inverse floaters" which, under
certain conditions, could (and did) effectively force the Fund to
sell securities from its portfolio regardless of market conditions.
In or around October 2008, the Fund filed a prospectus supplement
alerting investors of the true risks of its investments -- the same
risks that existed in 2006, 2007, and throughout 2008. By October
2008, however, those risks had already manifested, dealing
substantial losses to investors.
As a result of the Funds disclosures in October 2008, the Fund
lost approximately 40% of its net asset value. The Fund was crowned
"The Biggest Loser in its Category last year" by Fund analyst
Morningstar, Inc., as reported in a January 29, 2009 article by
Thompson Reuters PLC, after losing 49% percent of its value in 2008
due to, among other reasons, its investment in tobacco bonds.
Plaintiff seeks to recover damages on her own behalf and on
behalf of the Class and is represented by the law firm of
Kantrowitz, Goldhamer & Graifman, P.C. The firm has significant
experience successfully prosecuting complex securities fraud class
actions on behalf of defrauded investors.
If you engaged in transactions of Oppenheimer Rochester National
Municipal Fund securities during the Class Period, you may, not
later than May 12, 2009, move the court to be appointed as lead
plaintiff. In order to serve as lead plaintiff, however, you must
meet certain legal requirements.
If you wish to discuss this action or have any questions
concerning this notice or your rights or interests with respect to
this matter, please contact: Gary S. Graifman, Esq., at Kantrowitz,
Goldhamer & Graifman, P.C., toll-free at 800-660-7843 or via
email at ggraifman@kgglaw.com or by writing to Kantrowitz,
Goldhamer & Graifman, 747 Chestnut Ridge Road, Chestnut Ridge,
New York 10977.
CONTACT: Gary S. Graifman, Esq Kantrowitz, Goldhamer &
Graifman Email Contact www.kgglaw.com 1-800-660-7843 or
845-356-2570
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