Mass. Regulator Sues Oppenheimer Over ARS

Law360, New York (November 19, 2008, 12:00 AM EST) -- The secretary of the commonwealth of Massachusetts has filed an administrative suit against Oppenheimer & Co. Inc., alleging that the company lied to investors about the nature of auction rate securities and the stability of the ARS market.

The complaint was filed Tuesday by Secretary William Francis Galvin in the Office of the Secretary of the Commonwealth of Massachusetts, Securities Division.

The agency alleges that Oppenheimer marketed the risky securities as “cash equivalents,” and even avoided using the term “auction” altogether in describing the investments....
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