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Sunday, February 22, 2009
Class Action Filed Against Champion
A class action lawsuit has been brought on behalf of investors who purchased or
held shares of the Oppenheimer Champion Income Fund (OCHBX, OPCHX
and OCHCX) between January 26, 2007 and December 9, 2008. The suit centers around
the fund managers failure to disclose the extent of risk associated with the fund and seeks to recover financial losses suffered
by investors.
The Oppenheimer Fund lawsuit was filed on February 13, 2009, in the United States District Court
for the Southern District of New York seeking to represent all shareholders as a class.
The Champion Fund shares
began to decline in July 2008, as concerns about the financial industry’s poor underlying fundamentals increased. In
September 2008, with the collapse of AIG and Lehman Brothers, the funds share prices
sunk even further, ending the year with losses of 78%.
According to the Oppenheimer Champion Income Fund class
action complaint, the defendants failed to disclose that they were no longer adhering to their stated objective of not taking
any undue risk and were actually pursuing riskier investments to achieve greater yields. The plaintiffs also claim that the
extent of the Fund’s leverage exposure was misstated and that material facts were omitted about the extent of their
liquidity risk and the extent of their exposure to derivatives and other high risk instruments.
9:19 pm est
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