Lawsuit Calls Oppenheimer Municipal Fund 'Junk'

Law360, New York (June 16, 2009, 12:00 AM EDT) -- OppenheimerFunds Inc. is facing a putative class action claiming that a mutual fund focused on investment-grade Pennsylvania municipal bonds instead parked money in junk bonds and risky derivatives, resulting in steep losses for investors.

A lawsuit filed Monday in the U.S. District Court for the Western District of Pennsylvania claims that the Oppenheimer Pennsylvania Municipal Bond Fund lost a total of 28 percent of its net asset value between Nov. 28, 2005, and Nov. 28, 2008, including a nearly 34 percent loss over the first 11...
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