Investment management firm OppenheimerFunds has agreed to pay US$89.5 million to settle six consolidated class action lawsuits relating 2008 financial crisis on several municipal bond funds.
The lawsuits relate to Rochester National Municipals, Oppenheimer AMT-Free Municipals, Oppenheimer Rochester Fund Municipals, Oppenheimer Rochester AMT-Free New York Municipal Fund, Oppenheimer New Jersey Municipal Fund and Oppenheimer Pennsylvania Municipal Fund.
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OppenheimerFunds, a subsidiary of Massachusetts Mutual Life Insurance, was acuused of misleading shareholders about the safety of six funds.
Under the memorandum of understanding signed with shareholders of the six funds, OppenheimerFunds did not admit wrongdoing, and said it has maintained that the investments were consistent with the funds’ stated objectives and policies.
The proposed settlements are subject to a number of contingencies, including approval by the funds’ board of trustees and by the court.
The settlements do not resolve a related consolidated class action lawsuit involving the 2008 investment performance of Oppenheimer California Municipal Fund.
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By GlobalDataOppenheimerFunds said it believes that lawsuit is without merit and is continuing to defend itself in that action.
