SEATTLE, March 16, 2009 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro (HBSS), a nationally recognized class-action firm that filed a lawsuit against Oppenheimer Funds (Nasdaq:OPCHX) (Nasdaq:OCHBX) (Nasdaq:OCHCX) (Nasdaq:OCHNX) (Nasdaq:OCHYX), reports investors from across the country have contacted the firm, all detailing similar stories of significant financial losses they claim resulted from Oppenheimer's alleged fraudulent marketing of the fund.
As one of the first firms to file suit, HBSS seeks to represent two separate classes of shareholders -- the first under state law claiming breach of contract and second all fund purchasers during the outlined period of Nov. 1, 2006 to Dec. 31, 2008.
"The stories we are hearing from Oppenheimer investors are tragic," said lead attorney and HBSS managing partner Steve Berman. "For example, retirees are telling us they invested big portions of their life savings, believing these were safe, secure investments."
In the lawsuit, plaintiffs allege Oppenheimer marketed and sold the Champion Income Fund as a conservative high-income fund, portraying it as diversified and higher yielding. Allegations against Oppenheimer claim the fund took gambles on mortgage-backed securities and illiquid derivatives, which led to the fund's collapse.
Had investors known the funds were laden with high-risk, mortgage-backed securities, they would not have invested, Berman added.
The suit claims in late 2006, Oppenheimer invested more than 25 percent of the fund's assets in high-risk mortgage-backed securities. According to the fund's policies, this move required a majority vote from shareholders, something Oppenheimer failed to obtain, violating state laws.
"Oppenheimer had an obligation to tell investors the true risks associated with the funds, a responsibility we believe they breached," said Berman.
Overall, the fund experienced an almost $2 billion drop in assets in 15 months. Compared to other high-yield funds that averaged a drop of 32 percent in 2008, the Champion Fund experienced an 82 percent drop in value.
Any holders or purchasers of the Champion Income Fund during the outlined class period are eligible to join this suit and may move to be a lead plaintiff. The deadline for moving is April 14, 2009. Investors can contact plaintiff's counsel, Steve Berman, at (206) 623-7292 or via e-mail at oppenheimer@hbsslaw.com.
More information on this lawsuit is available at www.hbsslawsecurities.com/ocif.
About Hagens Berman Sobol Shapiro
Hagens Berman Sobol Shapiro is based in Seattle with offices in Chicago, Boston, Los Angeles, Phoenix, San Francisco and New York. Since the firm's founding in 1993, it has developed a nationally recognized practice in class action and complex litigation. Among recent successes, HBSS has negotiated a pending $300 million settlement as lead counsel in the DRAM memory antitrust litigation; a $340 million recovery on behalf of Enron employees which is awaiting distribution; a $150 million settlement involving charges of illegally inflated charges for the drug Lupron, and served as co-counsel on the Visa/Mastercard litigation which resulted in a $3 billion settlement, the largest anti-trust settlement to date. HBSS also served as counsel in a $850 million settlement in the Washington Public Power Supply litigation and represented Washington and 12 other states in lawsuits against the tobacco industry that resulted in the largest settlement in the history of litigation. For a complete listing of HBSS cases, visit www.hbsslaw.com.