Zamansky LLC warns investors in the Oppenheimer Champion Income Fund (”Champion Fund”) that the deadline for opting out of the settlement is August 31, 2011. The settlement for investors is reportedly $52.5 million, or approximately three ($.03) cents on the dollar. Investors who accept the settlement agree to release all claims they have against their broker or financial advisor who sold them the Champion Fund. If any investor does not opt out, he or she will lose their rights to bring a potentially valuable legal claim in arbitration before FINRA against the broker or financial advisor who sold him or her the Champion Fund.
The Oppenheimer Champion Fund was sold and marketed to investors as sa afe and secure income investment for elderly or retired investors who desired an income return while conserving principal. Unbeknownst to investors, the Champion Fund invested in mortgage-backed securities, credit default swaps and other risky derivatives causing a loss of over 80% of the Fund’s value. The financial advisors and brokers who sold the Champion Fund to investors had due diligence obligations to “know the security” they sold to investors, and were required to have a “reasonable basis” for recommending the security. Thus, Champion Fund investors may have valid legal claims against their financial advisors or brokers where the recovery potentially far exceeds the three-cent settlement. Nonetheless, these claims are lost on August 3, 2011, if the investor does not notify the court that it is opting out of the settlement.
If you would an evaluation of your potential claim against the broker or financial advisor who sold you the Champion Fund, please contact Jake Zamansky at (212) 742-1414, or email at Jake@Zamansky.com. Zamansky LLC has obtained successful recoveries for numerous clients in cases involving the Oppenheimer Champion Fund and other unsuitable funds and securities.