Multiple class action and individual lawsuits filed by investors recently have been filed because of the precipitous collapse of Oppenheimer’s Champion Income Fund (OCHCX).
This bond fund was down approximately 82% in value at the end of 2008. Other similar bond funds were down only approximately 30%. This enormous difference can be attributed to the Oppenheimer Champion Income Fund investing heavily in mortgage related investments.
Lawsuits that have been filed have alleged that the Oppenheimer fund prospectus failed to disclose the risks associated with the investments. In addition, the lawsuits have alleged that the mutual fund was marketed as a relatively safe income producing investment.
Federal and state securities laws required Oppenheimer to truthfully and accurately disclose the risks associated with the investments so that investors could make informed decisions about whether it was an appropriate investment for their needs. It is likely that many investors in this fund were retirees who were relying on the income from these investments for their every day living needs. Retirees have been particularly hard hit in this most recent market downturn because many of the investments that collapsed were bond funds generally considered to be safe income producing investments.
If you purchased this investment based on the recommendation of your financial advisor, you may have a claim against his or her firm for unsuitable investment advice.
Jason Doss is the owner of The Doss Firm, LLC, an Atlanta-based law firm devoted to representing consumers across the country in a variety of areas including investment disputes and consumer class action litigation. Mr. Doss earned his J.D. from Florida State University in 2002 and his B.A. from the University of Florida in 1997.