‘Level 3’ Valuations Are Not Shielded by Business Judgment Rule

Business Valuation UpdateVol. 18 No. 1
Legal and Court Case Update
January 2012
6211 Security Brokers, Dealers, and Flotation Companies
securities litigation

In re Oppenheimer Rochester Funds Group Securities Litigation
2011 U.S. Dist. LEXIS 122866
October 24, 2011
US
Federal Court
Colorado
United States District Court
none
Kane

Summary

Securities fraud claim survives motion to dismiss by alleging that municipal fund managers used Level 3 (unobservable) inputs to value highly risky derivative instead of the observable inputs (actual sales date), as promised in fund disclosures.

See Also

In re Oppenheimer Rochester Funds Group Securities Litigation

Securities fraud claim survives motion to dismiss by alleging that municipal fund managers used Level 3 (unobservable) inputs to value highly risky derivative instead of the observable inputs (actual sales date), as promised in fund disclosures.