Frequently Asked Questions

  1. Why Did I Receive the Notice?

    You or someone in your family may have acquired shares, or reinvested dividends, in one or more of the six Funds that are covered by the Settlements.

    Securities and Time Periods: The Settlements cover the following classes of shares purchased or acquired (including the acquisition of shares through reinvested dividends) from the Funds during the time periods (the “Class Periods”) listed in the following chart:

    Fund Share Class Ticker Class Period
    AMT-Free Fund A OPTAX between May 13, 2006 and October 21, 2008, inclusive
    AMT-Free Fund B OPFBX
    AMT-Free Fund C OMFCX
    AMT-Free New York Fund A OPNYX between May 21, 2006 and October 21, 2008, inclusive
    AMT-Free New York Fund B ONYBX
    AMT-Free New York Fund C ONYBX
    National Fund A ORNAX between March 13, 2006 and October 21, 2008, inclusive
    National Fund B ORNBX
    National Fund C ORNCX
    New Jersey Fund A ONJAX between April 24, 2006 and October 21, 2008, inclusive
    New Jersey Fund B ONJBX
    New Jersey Fund C ONJCX
    Pennsylvania Fund A OPATX between September 27, 2006 and November 26, 2008, inclusive
    Pennsylvania Fund B OPABX
    Pennsylvania Fund C OPACX
    Rochester Fund A RMUNX between February 26, 2006 and October 21, 2008, inclusive
    Rochester Fund B RMUBX
    Rochester Fund C RMUCX
    Rochester Fund Y RMUYX

    The Court has certified these six Classes in the six Actions for purposes of the Settlements. You received the Notice package by order of the Court, which also directed that the Notice be posted online, because you have a right to know about the class actions and the proposed Settlements, and about all of your options, before the Court decides whether to approve the Settlements. If the Court approves the Settlements, and after any objections or appeals are resolved, the Claims Administrator appointed by the Court will make the payments that the Settlements allow.

    The Notice explains the Actions, the Settlements, your legal rights, what benefits are available, who is eligible for them, and how to get them.

    The Court currently in charge of the Actions is the United States District Court for the District of Colorado, and the case is known as In re: Oppenheimer Rochester Funds Group Securities Litigation, Master Docket No. 09-md-02063-JLK-KMT. Judge John L. Kane is currently in charge of the Actions. The persons who sued and have been litigating these Actions are called the Lead Plaintiffs.

    The companies and individuals who were sued are called the Defendants. They are: OppenheimerFunds, Inc.; OppenheimerFunds Distributor, Inc.; MassMutual Life Insurance Co.; Scott Cottier; Ronald H. Fielding; Daniel G. Loughran; John V. Murphy; Troy E. Willis; Brian W. Wixted; John Cannon; Paul Y. Clinton; Thomas W. Courtney; David K. Downes; Matthew P. Fink; Robert G. Galli; Phillip A. Griffiths; Lacy B. Herrmann; Mary F. Miller; Joel W. Motley; Kenneth A. Randall; Russell S. Reynolds, Jr.; Joseph M. Wikler; Peter I. Wold; Brian F. Wruble; Clayton K. Yeutter; the Oppenheimer AMT-Free Municipals Fund; the Oppenheimer AMT-Free New York Municipals Fund; Oppenheimer Multi-State Municipal Trust; the Oppenheimer New Jersey Municipal Fund; the Oppenheimer Pennsylvania Municipal Fund; the Oppenheimer Rochester National Municipal Fund, and Rochester Fund Municipals.

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  2. What Are These Six Actions About?

    The Actions were brought as six class actions alleging that the registration statements and prospectuses issued by the Funds during the relevant time periods (the “Disclosure Documents”) misrepresented the risks of the Funds. In particular, the Lead Plaintiffs allege that five of the six Funds (the AMT-Free Fund, the AMT-Free New York Fund, the New Jersey Fund, the Pennsylvania Fund, and the Rochester Fund) explicitly articulated “preservation of capital” as their primary investment objective. Similarly, the Disclosure Documents for the sixth Fund, the National Fund, are alleged to have “sought to reassure investors by stating its quest for high yields would be tempered by careful selection of a diversified portfolio which would be closely monitored on an ongoing basis for liquidity and risk.”

    Lead Plaintiffs allege that the Disclosure Documents misrepresented: (1) the level of the Funds’ exposure to inverse floating rate securities (“inverse floaters”), and the risks and volatility associated with those investments; (2) the liquidity of the Funds’ investments; and (3) the improper valuation of Fund assets and liabilities and resulting net asset values (“NAVs”). Lead Plaintiffs allege that eventually the true risks presented by the assets held by the Funds were revealed, resulting in losses to Fund investors.

    Defendants deny that the Disclosure Documents were misleading or that they did anything wrong. Defendants argue that the material risks associated with the Funds’ investments were fully and fairly disclosed, that any undisclosed risks were unforeseeable, that the alleged damages were the result of disclosed risks and an unprecedented financial crisis, and that Lead Plaintiffs and the Class members cannot recover any alleged damages from Defendants.

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  3. Why Are These Six Actions Described As Class Actions?

    In a class action, one or more people are called class representatives. The class representatives in the six Actions are: (a) Leonard Klorfine for the AMT-Free Fund; (b) John Vazquez for the AMT-Free New York Fund; (c) Peter Unanue for the National Fund; (d) Victor Sasson for the New Jersey Fund; (e) Dharamvir Bhanot, William E. Miles, Jr., and John P. Galganovicz for the Pennsylvania Fund; and (f) Stuart and Carole Krosser for the Rochester Fund.

    The class representatives sue on behalf of people who have similar claims. Bringing a case as a class action allows adjudication of many similar claims of persons and entities that might be economically impractical to bring in individual actions. One court resolves the issues for all class members, except for those who exclude themselves from the class. Judge John L. Kane of the District of Colorado, in Denver, Colorado, currently is in charge of these Actions. The Court determined, for purposes of the Settlements only, that everyone who meets the descriptions of the six different Classes as described in the Notice is a member of one or more of the Classes covered by the Settlements.

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  4. Why Are There Settlements?

    The Court has not issued a final judgment in favor of Lead Plaintiffs or Defendants (collectively, the “Settling Parties”). Instead, prior to a final resolution of the Actions by the Court, the Settling Parties agreed to the proposed Settlements. The Lead Plaintiffs and their attorneys think the Settlements are best for all members of the Classes. This judgment reflects their growing awareness that, while Lead Plaintiffs’ claims were strong, Defendants had advanced a number of arguments and defenses that represented material risks to establishing liability and damages.

    For example, Defendants argued that the National Fund clearly and unequivocally disclosed to investors that it was a “speculative” junk bond fund, and cautioned them to “maintain a long-term perspective.” Defendants also vehemently disputed the factual foundation of the claims regarding the National Fund, insisting, among other things, that: (i) the National Fund always maintained adequate liquidity and largely avoided defaults; (ii) the National Fund continued paying dividends throughout the 2008 global credit crisis; (iii) the underlying assets held by National Fund were valued by independent third parties; (iv) allegations of collapsing inverse-floater trusts leading to “fire sales” of Fund assets had no basis in fact; (v) the credit ratings of the National Fund’s underlying assets were not overstated for either internally or externally rated assets; and (vi) the National Fund’s NAV enjoyed a healthy rebound starting in and following 2009.

    Defendants advanced the same arguments concerning liquidity, valuations, credit ratings, rebounding NAVs, etc. with respect to each of the other five Funds as well. Defendants further contended that the way Plaintiffs had stated their investment objective claims in these five cases created a risk the Court might: (1) reject the claims because the investment objectives were aspirational and were not statements of objective fact; or (2) deny class certification, because of differences in the facts known to individual investors in each Class (or their financial advisors), such as that the Funds were subject to short-term volatility.

    Additionally, Defendants articulated several threshold arguments that threatened either to end all six Actions entirely or limit severely the amount of damages Plaintiffs could recover. For example, Defendants challenged certification of any Classes, arguing that common facts did not predominate because the price volatility of the Funds’ shares put some investors on notice of the risk inherent in investing in the Funds. Defendants also advanced a negative causation defense, arguing that, because the Funds’ share prices were not set by the market but merely represented the net asset values of the Funds’ underlying holdings, no declines in those prices could possibly be attributed to the alleged misstatements in the Disclosure Documents. Defendants further contended that many Plaintiffs and members of the Classes were subject to statute of limitations defenses because they were on notice of their claims. And finally, Defendants argued the Court was apt to revisit its past rulings or have them reversed on appeal, including its preliminary rulings that: (a) the Funds’ investment objectives are actionable statements of fact and not protected aspirational opinions, (b) determinations of value and liquidity are actionable and are not judgment calls, and (c) the claims against Mass Mutual are timely because they relate back to the original complaints. Moreover, because many of the initial class action complaints involving these Funds were filed in different federal courts throughout the country, and were coordinated before Judge Kane only for pre-trial purposes, there was the possibility that the Actions would be returned to different courts for separate trials with the possibility of further reconsideration of any favorable rulings made by Judge Kane as well as the possibility of inconsistent trial outcomes.

    Prior to agreeing to the Settlements, Lead Counsel engaged in discovery and extended mediation sessions with a former federal judge as mediator. The discovery obtained and mediations allowed Lead Counsels to determine that there were substantial risks to Lead Plaintiffs continuing the Actions through trial(s) and that the Settlements were, therefore, in the best interests of all Class Members. In addition, a second mediation was conducted before the same former federal judge to determine the allocation of the Settlement Fund proceeds between the National Fund and the other five Funds. A further allocation of the Settlement proceeds among those five Funds reflects their proportionate share of the total estimated damages suffered by all members of the Classes for those funds.

    If the Actions Had Not Settled: The Settlements must be compared to the risk of no recovery after contested motions, trials and likely appeals. While Lead Counsel were prepared to go to trial and were confident about the claims, trials are risky propositions and Lead Plaintiffs might not have prevailed. The claims in these Actions involve numerous complex legal and factual issues that would require extensive expert testimony. Even if Defendants’ liability were proven at trial, the two sides do not agree about, among other things: (1) the amount of alleged damages, if any, that could be recovered at trial; (2) the other causes, if any, of the losses to the Funds during the relevant class periods; (3) the proper measure of alleged damages; and (4) the extent that various facts alleged by Lead Plaintiffs influenced the NAVs of the Funds during the relevant class periods.

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WHO IS INCLUDED IN THE SETTLEMENTS

  1. How Do I Know Whether I Am A Member Of One Or More Of The Classes?

    You are a member of the Classes, and can participate in the Settlements, if you meet one or more of the following six definitions:

    1. all persons and entities who purchased or otherwise acquired the A, B, or C shares of the AMT-Free Fund during the period from May 13, 2006 through October 21, 2008, inclusive, and were damaged thereby (the “AMT-Free Fund Class”);
    2. all persons and entities who purchased or otherwise acquired the A, B, or C shares of the AMT-Free New York Fund during the period from May 21, 2006 through October 21, 2008, inclusive, and were damaged thereby (the “AMT-Free New York Fund Class”);
    3. all persons and entities who purchased or otherwise acquired the A, B, or C shares of the National Fund during the period from March 13, 2006 through October 21, 2008, inclusive, and were damaged thereby (the “National Fund Class”);
    4. all persons and entities who purchased or otherwise acquired the A, B, or C shares of the New Jersey Fund during the period from April 24, 2006 through October 21, 2008, inclusive, and were damaged thereby (the “New Jersey Fund Class”);
    5. all persons and entities who purchased or otherwise acquired the A, B, or C shares of the Pennsylvania Fund during the period from September 27, 2006 through November 26, 2008, inclusive, and were damaged thereby (the “Pennsylvania Fund Class”); and
    6. all persons and entities who purchased or otherwise acquired the A, B, C, or Y shares of the Rochester Fund during the period from February 26, 2006 through October 21, 2008, inclusive, and were damaged thereby (the “Rochester Fund Class”).

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  2. What Are The Exceptions To Being Included?

    Excluded from the Classes are Defendants; members of Defendants’ immediate families; Defendants’ legal representatives, heirs, successors, or assigns; any entity in which Defendants have or had a controlling interest; and Oppenheimer’s officers and directors (collectively, “the Excluded Defendant Parties”). Also excluded from the Classes are the proposed Class Members who properly excluded themselves by filing a valid and timely request for exclusion in accordance with the requirements set forth in the Notice

    You are not a member of any of the Classes if you only sold shares of any of the Funds during the relevant Class Periods. You are a Member of one of the Classes only if you purchased or acquired shares of one of the Funds listed above during the respective Class Periods (including shares purchased through the reinvestment of dividends), and were damaged thereby.

    Additionally, the Settlements do not cover any claims arising from or relating to the Oppenheimer California Municipal Fund brought in the action captioned: In re California Municipal Fund, Nos. 09-cv-01484-JLK-KMT (Lowe); 09-cv-01485-JLK-KMT (Rivera); 09-cv-01486-JLK-KMT (Tackmann); and 09-cv-01487-JLK-KMT (Milhem). That litigation is still ongoing.

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  3. What Can I Do If I Am Still Not Sure Whether I Am Included?

    If you are still not sure whether you are a member of any of the Classes, you can ask for free help. You can contact the Claims Administrator at the toll free number (877) 273-9532 or via email at info@oppenheimersettlement.com for more information.

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REQUESTING EXCLUSION

  1. How Do I Request To Be Excluded From A Class?

    If you are a member of one or more of the Classes and you do not want to participate in the Settlements – meaning you do not want to receive a payment from the Settlements and do want to keep the right to sue or continue to sue the Released Defendant Parties (defined in the Notice at pages 15-16 ) on your own about issues that relate to the Lead Plaintiffs’ allegations in the Actions, see the Released Claims (defined in the Notice at pages 15-16 ) -- then you must take steps to get out of the Class or Classes of which you are a Class Member. This is called excluding yourself and is sometimes referred to as “opting out” of a Class. Defendants may withdraw from and terminate one or more of the Settlements if Class Members who purchased or otherwise acquired more than a certain amount of shares of the Funds exclude themselves from the Classes.

    You may choose to exclude yourself from the Settlements at this time. In order to properly exclude yourself, your written exclusion must be postmarked no later than July 2, 2014. If you request exclusion, you will NOT receive any benefits under the proposed Settlements. Also, you cannot object to any of the Settlements if you exclude yourself.

    In order to be valid, your request for exclusion must: (i) set forth the name, address, and telephone number of the person or entity requesting exclusion; (ii) state that the person or entity “requests exclusion in In re: Oppenheimer Rochester Funds Group Securities Litigation, Master Docket No. 09-md-02063-JLK-KMT” and specify from which Class the person or entity seeks exclusion; (iii) be signed and dated by such person or entity; (iv) state the name of the broker, if any, at which such person or entity held Fund shares; (v) state the date, number and share price of each Fund share purchased and sold during the Class Period associated with the Fund in question, through the end of that Class Period or the date of sale of such shares, if earlier; (vi) state the number of Fund shares that the person or entity held on the day before the beginning the Class Period associated with the Fund in question, and (vii) be postmarked no later than July 2, 2014. Requests for exclusion must be mailed to the following address:

    Oppenheimer Rochester Funds Securities Litigation
    Exclusions
    c/o Claims Administrator
    P.O. Box 3518
    Portland, OR 97208-3518

    Please keep a copy of everything you send by mail, in case it is lost or destroyed.

    You cannot exclude yourself on the phone or by e-mail. Do not request exclusion if you wish to participate as a Class Member. If you exclude yourself from these Classes, you will not be affected by any decisions in any of these Actions, and you will not be entitled to share in the Settlement Funds. If you have brought or intend to bring your own arbitration or lawsuit against any of the Released Defendant Parties, you should speak to a lawyer immediately. You must exclude yourself from these Classes to continue your own lawsuit or arbitration.

    If you do not request exclusion from a particular Class, you will be considered a Member of that Class, you will be bound by the terms of the proposed Settlements and you will not be able to pursue your own individual legal action based upon the claims that are being released (described in the Notice at pages 15-16).

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THE BENEFITS OF THE SETTLEMENTS – WHAT YOU GET

  1. What Do The Settlements Provide?

    Defendants have agreed to pay $89,500,000 in cash to be divided among six separate Settlement Funds: The allocation between the National Fund ($26,850,000) and the other five Funds ($62,650,000) was determined following mediation before a former federal judge conducted by separate allocation counsel unaffiliated with Lead Counsel or any other counsel in the Actions. Thereafter, the allocation among the five Funds was determined on a proportional basis by the relative damage amounts estimated by Lead Plaintiffs’ damage expert.

    The balance of each separate Settlement Fund, after payment of Court-approved attorneys’ fees and expenses and the costs of settlement administration, including the costs of printing and mailing the Notice (the “Net Settlement Funds”), will be divided among all eligible Class Members of each Class.

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  2. How Much Will My Payment Be?

    Your share of a particular Net Settlement Fund will depend on the number of Class Members filing claims for that Class, how many damaged shares were acquired during the applicable Class Period, the aggregate Recognized Claims for that Class, and when you acquired and sold your shares.

    It is anticipated that each Net Settlement Fund available for distribution will be less than the total losses or damages alleged to be suffered by Class Members for that particular Class. As a result, the Net Settlement Funds will be distributed pro rata to Class Members, based upon their “Recognized Claims” as that term is described in the Notice at pages 8-11, whose total payment amount from all of the Net Settlement Funds would equal or exceed $10.00. The Claims Administrator will determine each Authorized Claimant’s pro rata share of the six separate Net Settlement Funds. The Distribution Plan is not intended to estimate the amount a Class Member might have been able to recover after a trial, nor is it intended to estimate the amount that will be paid to Authorized Claimants. The Plan is the basis upon which the separate Net Settlement Funds will be proportionately divided among all the Authorized Claimants. The Court may approve the Distribution Plan with or without modifications agreed to among the Settling Parties, or another plan, without further notice to the Classes. The Court will be asked to approve the Claims Administrator’s determinations before the Net Settlement Funds are distributed to Authorized Claimants.

    The Distribution Plan is in the Notice at pages 8-11.

    Click here to view charts of the NAVs for the Funds during the relevant time periods.

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HOW YOU GET A PAYMENT

  1. How Can I Get A Payment?

    To qualify for a payment, you must be an eligible Class Member.

    The Claims Administrator has access to Oppenheimer’s data on the positions of Class Members who held shares in the Funds directly through Oppenheimer.

    If your shares were held directly with Oppenheimer, then you have been sent a completed Record of Fund Transactions for those shares with the Notice and you are not required to submit a Proof of Claim to be eligible to receive a distribution from the Settlements for those shares.

    The Claims Administrator does not have access to data on the positions of Class Members who held shares in the Funds through a broker-dealer or other intermediary.

    If your shares were held through a broker-dealer or other intermediary, then you were not sent a completed Record of Fund Transactions for those shares with the Notice. Instead, you may have been sent a Proof of Claim with the Notice. To be eligible to receive a distribution from the Settlements for those shares, you must submit a Proof of Claim, signed under penalty of perjury and supported by such documents as specified in the Proof of Claim as are reasonably available to you, in order to establish your holdings in the Funds during the relevant periods. Please read the instructions carefully, fill out the Proof of Claim, include all the documents requested, sign it, and mail it in an envelope postmarked no later than August 28, 2014. Please retain a copy of everything you mail, in case the materials are lost or destroyed during shipping. You may also file a Proof of Claim electronically through this website by clicking here .

    If you have any questions about how to complete the Proof of Claim, then you may contact the Claims Administrator at (877) 273-9532 or by email at info@oppenheimersettlement.com.

    Proofs of Claim must be postmarked or received by August 28, 2014, addressed as follows:

    Oppenheimer Rochester Funds Securities Litigation
    Claims Administrator
    P.O. Box 3518
    Portland, OR 97208-3518

    Class Members who are uncertain whether they are required to submit a Proof of Claim should seek assistance from the Claims Administrator.

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  2. When Will I Receive My Payment?

    At this time, we are still processing claims. Claims processing takes time. It could take several months or longer. Please be patient

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THE LAWYERS REPRESENTING EACH CLASS

  1. Do I Have A Lawyer In These Actions?

    The Court appointed Cohen Milstein Sellers & Toll PLLC to represent the AMT-Free Fund and the Rochester Fund Classes; Milberg LLP to represent the AMT-Free New York Fund, National Fund, and New Jersey Fund Classes; and Berger & Montague, P.C. to represent the Pennsylvania Fund Class. These lawyers are called Lead Counsel.

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THE COURT’S FAIRNESS HEARING

  1. What was the outcome of the Settlement Hearing?

    Judge John L. Kane granted final approval of the Settlements at the Settlement Hearing on July 31, 2014. The Claims Administrator is currently processing claims, which takes a significant amount of time. We thank you for your patience.

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IF YOU DO NOTHING

  1. What Happens If I Do Nothing At All?

    If you did nothing, you remained a Class Member and, if the Settlements become 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 each of the six publicly-filed Stipulations and Agreements of Settlement (collectively, the “Stipulations”) and in the Notice. Your eligibility to receive a payment from the Settlements will depend upon the Distribution Plan and whether (if you are required to do so) you complete and return a Proof of Claim as explained in Question 11.

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GETTING MORE INFORMATION

  1. Are There More Details About The Settlements?

    This website contains only a summary of the terms of the proposed Settlements. More detailed information about the Actions is available on the Important Documents page.

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  2. How Do I Get More Information?

    You can contact the Claims Administrator by phone at (877) 273-9532, or by email at info@oppenheimersettlement.com.

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