History of the Lawsuit
On November 18, 2009, Senior United States District Court Judge John L. Kane appointed Sparer Law Group lead counsel in the securities class-action litigation against the Fund. "We are pleased that the Court ratified the Lead Plaintiff's selection of Sparer Law Group as lead counsel for the class action," said Alan W. Sparer. "Many other firms filed similar actions against the California Fund. The decision by the Court allows investors and witnesses to know where to go to get information about the lawsuit, and whom to contact if they have information that will help us prosecute the action."
Sparer Law Group’s lawsuit against the Fund was consolidated with actions against six other Oppenheimer municipal bond funds before Judge Kane. In April 2010, Oppenheimer filed a motion to dismiss all six actions. Judge Kane denied the motion to dismiss, finding that Plaintiffs had adequately pled viable causes of action against Defendants.
In the summer of 2013, the Plaintiffs in the other six Oppenheimer municipal bond fund cases settled their claims with Oppenheimer for a total of $89.5 million allocated among all six funds. However, the lawsuit against the California Fund has proceeded through discovery, which included the review of millions of pages of documents, the depositions of nearly two dozen Oppenheimer executives, portfolio managers, and risk managers, and the preparation of four expert reports (not including the reports of Defendants’ experts). Sparer Law Group believes that the evidence uncovered thus far confirms the allegations that the Fund failed to adhere to its investment objective and failed to disclose the significant risks taken by the Fund.
In March 2015, Judge Kane granted the motion for class certification. Oppenheimer appealed that order and the Tenth Circuit Court of Appeals sent the motion back to Judge Kane for further findings. The parties have since provided supplemental briefing and in July 2015 the Court conducted a two-day evidentiary hearing relating to class certification issues. At the present time, no further decision on class certification has been issued.
If you have been affected by the practices described in this class action, you do not need to take action at this time. If you wish to participate in the lawsuit as a class member, a notice will be sent to you after the case is certified as a class action—a process that may take several months. In the interim, if you would like more information about this action, including the complaint and orders, please visit www.sparerlaw.com.
If you are a potential witness having information that will assist us in the prosecution of this matter, please contact us at firstname.lastname@example.org or (415) 217-7300.
To view the First Amended Complaint, click on the following link:
To view the Order Appointing Lead Plaintiffs and Lead Counsel, click on the following link:
Lead Plaintiff / Lead Counsel - Order
To view the Order Denying Defendants’ Motion to Dismiss, click on the following link:
Motion to Dismiss - Order
If you believe you may have been affected by the practices described in the Complaint, please fill out the form below. Please include whether you would like to receive email updates about the case and whether we may contact you for more information about your investment.
All information sent to Sparer Law Group via this form is confidential and Sparer Law Group agrees to protect it as such against unauthorized use, publication or disclosure. If you want to join the class but do not wish to submit information via the Internet, please call us to discuss your potential eligibility at 415-217-7300.