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Written by 2:16 pm Blog, Securities Fraud Articles

Recovery of Oppenheimer Rochester Municipal Fund Losses

Have you suffered significant losses as a result of investments made in an Oppenheimer Rochester Municipal Fund? If so, the White Law Group may be able to help you recover your investment losses.

According to reports, some of the Oppenheimer Rochester Municipal Funds suffered significant losses following the 2008 economic downfall. Unfortunately for some investors it appears that many brokerage firms failed to adequately disclose the risks associated with these Funds. The White Law Group is investigating whether brokerage firms misrepresented or downplayed the risks of certain Oppenheimer Rochester Municipal Funds. If proven, these firms may be help responsible for any losses through a FINRA arbitration claim.

The collective summary prospectus filed with the SEC states that the Oppenheimer Rochester Municipal Funds can invest up to 25% of its assets in below-investment-grade securities sometimes referred to as “junk bonds”. The trouble with below-investment-grade securities is that they “may be subject to greater price fluctuations than investment-grade securities, increased credit risk and face a greater risk that the issuer might not be able to pay interest and principal when due.” Therefor the Oppenheimer Rochester Funds are at greater credit risks than other funds that invest solely in investment-grade securities. Additional risks listed in the prospectus included interest rate risk, credit risk, credit spread risk, extension risk, reinvestment risk and prepayment risk

When disclosing the risk of a particular bond offering, a financial adviser must make the investor fully aware of all the risks, including (1) Credit risk – i.e., the risk that the company offering the bond could be downgraded by reporting agencies (such as Moody’s) affecting the value of the bond, and (2) interest rate risk – i.e., the risk that the value of the bond could decrease if int rest rates increase (this is precisely the risk that is currently present in the bond market and which must be disclosed by a broker before recommending a bond to any client).

If you suffered losses in a Oppenheimer Rochester Municipal Funds and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (312)238-9650 for a free consultation.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.

For more in formation on the firm, visit www.WhiteSecuritiesLaw.com.

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