OppenheimerFunds Pays $100M To End Investor Suits

Law360, New York (May 20, 2011, 7:04 PM EDT) -- OppenheimerFunds Inc. on Thursday agreed to fork over $100 million to settle two putative class actions in Colorado alleging the mutual funds manager misled investors about its speculative and ultimately ruinous subprime exposures.

OppenheimerFunds, part of the MassMutual Financial Group, agreed to pay a class of investors in the Core Bond Fund $47.5 million and a second class of Oppenheimer Champion Income Fund investors roughly $52.5 million to drop claims that the defendants misrepresented the funds' risks and strategies.

While OppenheimerFunds marketed the funds as conservative...
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