US buyout house Oppenheimer has won the dismissal of a lawsuit brought by two pension plans which claimed it made false and misleading statements about the value of its holdings.
Brockton and Quincy retirement boards had sued over Oppenheimer Global Resource Private Equity Fund I’s investment in a separate vehicle called Cartesian Investor-A, which had shares in a Romanian company created to compensate citizens of the former Communist regime, Reuters said.
But it reported District Judge Rya Zobel had dismissed the complaint made under federal securities law because the investments were private transactions rather than a public offering.
Brockton Retirement Board had invested $5m in OGRPEF I, $3.2m of which has been used as capital by the fund’s general partner.
But the pension plan claimed Oppenheimer solicited fundraising by saying it had more valuable holdings in the fund of funds than was actually the case.
Oppenheimer also received an enquiry from the US Department of Justice 12 months ago seeking information about the valuation of a portfolio holding within the fund.
The US Attorney’s Office for Massachusetts issued a notice to the firm on February 24 saying it was looking into the matter.
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