BOULDER, Colo., June 8, 2009 (GLOBE NEWSWIRE) -- The Shuman Law Firm today announced that a lawsuit has been filed seeking class action status in the U.S. District Court for the District of Colorado on behalf of a class consisting of all persons who purchased Class A and/or Class B and/or Class C shares of the Oppenheimer AMT-Free Municipals Fund (the "Fund") (Nasdaq:OPTAX) (Nasdaq:OTFBX) (Nasdaq:OMFCX) during the period from May 13, 2006 to October 21, 2008, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights and interests with respect to this matter, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 974-8626 or email Mr. Shuman at kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.
The complaint charges OppenheimerFunds, Inc., OppenheimerFunds Distributor, Inc., the Fund and certain of its trustees and officers with violations of Sections 11, 12 (a)(2), and 15 of the Securities Act of 1933, which prohibit materially false and misleading statements in registration statements and prospectuses of the kind used to sell shares in the Fund.
According to the complaint, during the Class Period the Fund failed to disclose risk factors associated with the Fund's investments, including, but not limited to: (1) the Fund's investments in "inverse floater" securities that exposed it to the risk that it would be forced to sell, upon certain occurrences relating to the inverse floater securities, other securities in its portfolio at fire-sale prices. This amounted to hundreds of millions of dollars in undisclosed potential liabilities; and (2) the Fund's over concentration of investments in illiquid securities in violation of its 15% cap by investing in illiquid tobacco bonds and ordinary municipal bond and notes that could turn illiquid quickly.
On October 21, 2008, the Fund filed a prospectus supplement alerting investors of the true liquidity risks of its investments -- the same risks that existed in 2006, 2007 and throughout 2008. By October 2008, however, those risks had already manifested, causing substantial losses to investors. On October 21, 2008, the Fund's shares traded at approximately $5.96 per share, down from $8.93 per share at the beginning of the year, an approximate decline of 33.3% per share for the year. The Fund was among the worst performing in its peer group.
If you are a member of the proposed class, you may request that the Court appoint you as lead plaintiff of the class no later July 13, 2009. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and derivative litigation.