Oppenheimer Settles With Mass., NY Over ARS

Law360, New York (February 24, 2010, 6:22 PM EST) -- Investment firm Oppenheimer & Co. has agreed in separate deals with Massachusetts and New York officials to pay about $35 million to reimburse auction rate securities investors who suffered when the market dried up.

The Massachusetts' Secretary of the Commonwealth and the New York State Attorney General reached separate deals with Toronto-based Oppenheimer, according to statements issued Wednesday and Tuesday.

Oppenheimer marketed ARS as safe, cash-equivalent products when in fact they faced increasing liquidity risk, according to New York Attorney General Andrew Cuomo, whose office conducted...
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