Master Docket No. 09-md-02063-JLK-KMT
You received a Notice because our records indicate that you purchased or acquired A, B, or C shares in the Oppenheimer California Municipal Bond Fund (the “Fund”) between September 27, 2006 and November 28, 2008(“the Class Period”). Investors who acquired Fund shares during the Class Period are Class Members who may receive payment as part of the settlement of litigation regarding the Fund.
The litigation is called In re: Oppenheimer Rochester Funds Group Securities Litigation, Master Docket No. 09-md-02063-JLK-KMT. Judge John L. Kane of the United States District Court for the District of Colorado is currently presiding over this case. Judge Kane authorized the notice to be sent to potential Class Members to inform them of the case and to explain Class Members’ rights and options. You are not being sued.Back To Top
The Plaintiff, an individual investor, sued under Sections 11, 12(a)(2), and 15 of the Securities Act of 1933. The Plaintiff alleged a series of material misstatements and omissions in the Fund’s offering documents issued during the Class Period relating to the following:
The prospectuses and statements of additional information at issue in this case were filed with the SEC between September 27, 2006 and October 31, 2007 inclusive. The Plaintiff alleged that the offering documents materially understated the risks of investing in the Fund, causing losses to Class Members once those risks materialized.
The companies and individuals who have been sued are called the Defendants. The Defendants in this case are: Oppenheimer California Municipal Fund, OppenheimerFunds, Inc., OppenheimerFunds Distributor, Inc., Mass Mutual Life Insurance Co., and the following individual trustees and/or officers of the Fund: Brian F. Wruble, John V. Murphy, Brian W. Wixted, David K. Downes, Matthew P. Fink, Robert G. Galli, Phillip A. Griffiths, Mary F. Miller, Joel W. Motley, Russell S. Reynolds, Jr., Peter I. Wold, Ronald H. Fielding, Daniel G. Loughran, Scott S. Cottier, and Troy E. Willis.
The Defendants deny that the offering documents were misleading and deny that they did anything wrong. The Defendants argue that the material risks associated with investing in the Fund were disclosed and that Class Members cannot recover any alleged damages from the Defendants.Back To Top
The parties have exchanged and reviewed millions of pages of documents and taken the depositions of dozens of fact witnesses and expert witnesses. Plaintiff has successfully opposed two motions to dismiss and the parties have briefed six summary judgment motions and evidentiary motions relating to the admissibility of each parties’ expert witnesses.
On October 16, 2015, the Court approved, or “certified,” this lawsuit to proceed as a class action lawsuit. In a class action, one or more individuals called “class representatives” sue on behalf of themselves and other investors who have similar claims. The investors together are a “class,” and the Court’s rulings apply to the class as a whole. If a trial takes place or the case is otherwise resolved, it will decide the lawsuit for everyone in the Class. The class representative in this action is the Plaintiff, Joseph Stockwell.Back To Top
The Court has not issued a final judgment in favor of Plaintiff or Defendants (collectively, the “Settling Parties”). Instead, prior to a final resolution of the action by the Court, the Settling Parties agreed to the proposed Settlement. The Plaintiff and the Court-appointed Class Counsel, Sparer Law Group and Girard Gibbs LLP, think the Settlement is in the best interest of the Class. The Plaintiff and Class Counsel took into consideration that, while they believe the claims have merit, Defendants have advanced arguments and defenses that present material risks to establishing liability and damages. These risks needed to be balanced against the benefits of settling the Action now and obtaining a $50,750,000.00 payment from Defendants.
Plaintiff has fully explored the facts and circumstances of the Action during eight years of litigation since it was filed. Class Counsel have successfully opposed two motions to dismiss the Action and obtained an order certifying this action as a class action. They have reviewed millions of pages of Defendants’ documents and the Settling Parties have taken sworn testimony from over 20 fact witnesses. The Settling Parties have also retained a combined ten experts on topics related to the Action, and each of the experts has reviewed the relevant materials, produced expert reports, and given testimony under oath.
Nevertheless, there remains substantial risk in proceeding to trial. Currently pending before the Court are three motions filed by Defendants that, if granted, could preclude a finding of liability for one or more of Defendants, or greatly reduce the amount of damages that the Class could recover. Likewise pending before the Court are Defendants’ evidentiary motions that, if granted, could prevent Plaintiff’s experts from offering certain of their opinions at trial. Even if Defendants’ motions were all resolved in Plaintiff’s favor, Plaintiff would face the expense, delay, and uncertainty of a complex securities class action trial and likely post-trial appeals.
Prior to agreeing to the Settlement, Plaintiff, Class Counsel and Defendants engaged in mediation over a four month period with a former federal judge serving as mediator. Balancing the risks of continuing to litigate against the benefits of the Settlement, Plaintiff and Class Counsel believe that the Settlement is in the best interest of the Class.Back To Top
If you purchased or acquired shares of the Oppenheimer California Municipal Bond Fund under ticker symbols OPCAX (class A shares), OCABX (class B shares) or OCACX (class C shares) between September 27, 2006 and November 28, 2008 you are a Class Member.Back To Top
You are not part of the Class if you only held or sold shares of the Fund during the period between September 27, 2006 and November 28, 2008, and did not purchase or otherwise acquire shares of the Fund.
You are not a Class Member if you previously excluded yourself from the Class in response to the Notice of Class Certification sent in 2016 to all potential Class Members.Back To Top
Defendants have agreed to pay $50,750,000.00 in cash (with interest, the “Settlement Fund”). The balance of the Settlement Fund, after payment of Court-approved attorneys’ fees and expenses, and the costs of settlement administration, including the costs of printing and mailing this Notice (the “Net Settlement Fund”), will be divided among all Authorized Claimants, as defined in FAQ 10 below.Back To Top
Your recovery will depend on several factors, including the number of shares you acquired during the Class Period through purchase or reinvestment of dividends, the prices at which shares were purchased and sold, the date of each transaction, and the number and size of the Recognized Claims of other Class Members. The Net Settlement Fund will be distributed proportionally to each Authorized Claimant, based upon his or her “Recognized Claim” as determined under the Distribution Plan described on Page 6 of the Notice.Back To Top
To obtain a payment, you must be an Authorized Claimant, which is a Class Member (i) with a valid claim, whose name, address, and account information has been provided by the Defendants, a broker-dealer, or other intermediary to the Claims Administrator, or (ii) who submits a timely and valid Proof of Claim to the Claims Administrator. Proofs of Claim must be postmarked or received by February 28, 2018, addressed as follows:
Oppenheimer California Municipal Bond Fund
PO Box 3719
Portland, OR 97208-3719
The Court will hold a hearing on November 6, 2017, to decide whether to approve the Settlement. If Judge Kane approves the Settlement, the Net Settlement Fund will be distributed when all questions relating to claims on the Net Settlement Fund have been resolved and the Court has issued an order approving the Final Distribution.Back To Top
The Court appointed Sparer Law Group and Girard Gibbs LLP as Class Counsel for the Fund, and Sparer Law Group as Lead Counsel. You will not be separately charged for these lawyers, who will seek to be paid out of the Settlement Fund. If you want to be represented by your own lawyer, you may hire one at your own expense.Back To Top
Class Counsel have prosecuted the Action on behalf of the Plaintiff and the Class on an entirely contingent basis since 2009. They have not been paid for their services or reimbursed for any litigation expenses they advanced to fund the Action. Class Counsel will ask the Court for attorneys’ fees of one third of the Settlement Fund, and for reimbursement of litigation expenses not to exceed $3,900,000.00. The Class Representative will seek reimbursement for reasonable costs and expenses (including lost wages) directly relating to the representation of the Class that will not exceed $74,000.00. In addition, Class Counsel will ask the Court to approve payment to a claims administrator of reasonable costs for administering the Settlement under the Court’s supervision. Class Counsel anticipate that these administration costs will not exceed $300,000.00. The Court may award less than these amounts. Class Counsel will file papers in support of their requests for fees and expenses on or before October 3, 2017, and post copies of such papers in the Documents section of this website here.Back To Top
If you are a Class Member, you can object to the Settlement if you do not like any part of it, including the Distribution Plan and the request for attorneys’ fees and expenses. You must timely object and state the reasons why you object and think the Court should not approve the Settlement or anything related to it. The Court will consider your views. In order to object, you must be a Class Member, and you must send a letter saying that you object to the terms of the Settlement in “In re: Oppenheimer Rochester Funds Group Securities Litigation, Master Docket No. 09-md-02063-JLK-KMT.”
Your objection letter must be dated and signed, and must include your name, address, telephone number, the number of Fund shares purchased and sold during the Class Period, the reasons you object, and any applicable supporting papers. Please keep a copy of everything you send by mail. Your objection must be postmarked no later than October 18, 2017 and mailed to each of the persons listed below:
|Clerk of the Court||Lead Class Counsel||Defendant's Counsel|
|Alfred A. Arraj United States Courthouse
901 19th Street, Room A105
Denver, CO 80294
|Alan W. Sparer
Sparer Law Group
100 Pine Street
San Francisco, CA 94111
|Matthew L. Larrabee
1095 Avenue of the Americas
New York, NY 10036
Counsel for Defendants Oppenheimer Funds, Inc., Oppenheimer Funds Distributor, Inc., Scott Cottier, Ronald H. Fielding, Daniel G. Loughran, John V. Murphy, Troy Willis, Brian W. Wixted, and Massachusetts Mutual Life Insurance Company
Arthur H. Aufses III
Kramer Levin Naftalis &
1177 Avenue of the Americas
New York, NY 10036
Counsel for David K. Downes, Matthew P. Fink, Robert G. Galli, Phillip A. Griffiths, Mary F. Miller, Joel W. Motley, Kenneth A. Randall, Russell S. Reynolds, Jr., Joseph M. Wikler, Peter I. Wold, Brian F. Wruble, and Clayton K. Yeutter, and the Oppenheimer California Municipal Fund
The Court will hold a settlement hearing at 10:30 a.m. on November 6, 2017 at the Alfred A. Arraj United States Courthouse, 901 19th Street, Denver, Colorado. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will also consider how much to pay to Class Counsel. The Court may decide these issues at the hearing or take them under consideration and decide them at a later date. The Court may change the date and time for the hearing without giving another notice to members of the Class. If you want to attend, you should check the date and time with Lead Counsel.Back To Top
No. Class Counsel will answer any questions Judge Kane may have, but you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it. As long as you mailed your written objection on time, the Court will consider it. If you want to be represented by your own lawyer at the hearing, you may hire one at your own expense.Back To Top
You may ask the Court for permission to speak at the Settlement hearing. To do so, you must send a letter saying that it is your “intention to appear at the settlement hearing in In re: Oppenheimer Rochester Funds Group Securities Litigation Master Docket No. 09-md-02063-JLK-KMT.” You must include your name, address, telephone number, your signature, and identify the number of Fund shares purchased and sold during the Class Period. If you intend to present evidence at the hearing, you must identify any witness you may call to testify and any exhibits you intend to introduce at the hearing in your notice. Your notice of intention to appear must be postmarked no later than October 18, 2017, and be sent to the Clerk of the Court, Lead Counsel, and Defendants’ Counsel at the addresses listed in FAQ 13. You cannot speak at the hearing if you excluded yourself from the Class.Back To Top
If you were sent a completed Record of Fund Transactions with the Notice, then you will be eligible to receive a payment from the Settlement Fund even if you do nothing. If you were not sent a completed Record of Fund Transactions with the Notice, and you do nothing, then you will not receive any payment from the Settlement.
If the Settlement becomes effective, you will not be able to bring a lawsuit or action of any kind, including arbitration, continue with a lawsuit of any kind, including arbitration, or be part of any other lawsuit or arbitration against the Released Defendant Parties about the Released Claims, which are described in the Stipulation of Settlement. The Stipulation can be found here.Back To Top
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