(Updates with lawyer’s statement in second paragraph.)
Oct. 25 (Bloomberg) -- Massachusetts Mutual Life Insurance Co.’s Oppenheimer Rochester Funds lost a motion to dismiss a group of 32 class-action securities fraud lawsuits when a federal judge in Colorado moved the cases forward for trial.
“This is a very significant opinion” and “we are pleased that we can now proceed with the discovery phase of this litigation,” said plaintiffs’ co-lead counsel, Steven Toll, in a statement today.
Shareholders in seven Oppenheimer municipal bond funds sued in federal courts nationwide, consolidated in 2009, alleging they were marketed as stable income-seeking funds “when in fact they employed extremely risky investment strategies,” U.S. Senior District Judge John L. Kane in Denver wrote in an order yesterday.
“Plaintiffs’ losses are plausible,” based on alleged misleading statements and omission,” the judge concluded in refusing to dismiss the cases.
The consolidated case is In Re Oppenheimer Rochester Funds Group Securities Litigation, 09-md-02063, U.S. District Court, District of Colorado (Denver).
--Editors: Andrew Dunn, Mary Romano
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