OppenheimerFunds Responds to Oregon Lawsuit

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OppenheimerFunds, Inc. responds to charges from the State of Oregon about the OppenheimerFunds 529 Plan and the Oregon College Savings Plan. The Company is prepared to defend itself vigorously.

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For the State Attorney to accuse OFI of wrongdoing is inaccurate, misleading and unfair

OppenheimerFunds, Inc. ("OFI") is very disappointed by the actions of the Oregon Attorney General's Office in filing a lawsuit against it last week seeking to recover amounts lost in investments held in the OppenheimerFunds 529 Plan (advisor-sold) and the Oregon College Savings Plan (direct-sold). For the last several months, OFI has cooperated fully with the State of Oregon in its inquiry into OFI's role as program manager for the funds at issue. Despite this cooperation and ongoing dialogue with the State, Oregon proceeded to file its suit without so much as a single meeting with OFI to discuss their concerns or potential solutions. OFI is deeply concerned with the investigative process followed by Oregon and its decision to file a suit at this time. While OFI would have preferred reasonable, good faith discussion and resolution, it is prepared to defend itself and its reputation vigorously against these claims which lack legal merit.

The mutual fund cited in the complaint, Oppenheimer Core Bond Fund, experienced significant losses due to unprecedented market volatility in 2008, as did other mutual funds and investments. Indeed, the investment consultant hired by the State of Oregon's Board noted at a meeting of the Board in January 2009 that OFI wasn't the only firm that made the types of investments that the fund at issue held and that the fund was hit badly by "the dislocation of the market." That consultant went on to state that OFI provided "full transparency in the portfolio, allowing it to be analyzed at both the sector and security level." Throughout its stewardship of the Oregon 529 Programs, OFI has consistently provided the Plan Board with complete information about the fund, its portfolio holdings and investment policies and offered to make its portfolio managers available to meet with the Board, an offer that was not accepted. OFI did not radically change the investment policies of the Fund in 2007 and 2008, as alleged in the suit, and made no changes in the fund's investment policies and strategies without telling the Board. Indeed, those investment policies and strategies are readily apparent from the fund's publicly filed disclosure documents, which include detailed listings of the fund's holdings. "For the Attorney General to suggest otherwise in the complaint is simply a distortion of the facts," says Bruce Dunbar, OppenheimerFunds spokesman.

OFI's first and foremost interest and concern is for the investors who have chosen Oppenheimer funds for their investment portfolios. OFI takes that responsibility seriously and seeks long-term investment results consistent with the stated objectives and policies of Oppenheimer funds. OFI management and many of its employees are also among those who invested in those funds and suffered losses in 2008 due to unprecedented market volatility and illiquidity. However, OFI never engaged in any misconduct in its role as program manager for the Oregon 529 Plan. The fund that had the greatest losses in that Plan at all times invested in accordance with its stated investment objectives and policies. "For the State Attorney to accuse OFI of wrongdoing is inaccurate, misleading and unfair," says Bruce Dunbar, OppenheimerFunds spokesman.

Throughout its 50 years in business, OFI has been, and will continue to be, committed to helping families save for college and other investment goals. While 2008 and 2009 have been challenging for all investors, OppenheimerFunds will continue to focus on seeking sustained, long-term investment performance.

The complaint was filed on April 13, 2009 in the Oregon Circuit Court for Marion County (Case # 09C14018).

About OppenheimerFunds, Inc.:
OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. The Oppenheimer funds managed by OppenheimerFunds, Inc. and a subsidiary have more than 6 million shareholder accounts, as of 3/31/09.
The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, qualified retirement plans for individuals and corporations, investment management for institutions and sub-advisory services. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service.
OppenheimerFunds, Inc. is a member of the MassMutual Financial Group and is not affiliated with Oppenheimer & Co, Inc. or Oppenheimer Capital.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information about the funds. You may download and view a prospectus now or obtain one by asking your financial advisor or call OppenheimerFunds Distributor, Inc. at 1.800.525.7048. Read prospectuses carefully before investing.

Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
Two World Financial Center, 225 Liberty Street, New York, NY 10281-1008
©Copyright 2009 OppenheimerFunds Distributor, Inc. All rights reserved

WEBC.041509.02

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Jeaneen Pisarra
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