Law Offices of Howard G. Smith Announces Class Action Lawsuit Against ProShares' UltraShort Real Estate ProShares Fund.class action lawsuit class action lawsuit
A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax has been filed in the United States District Court United States District Court
In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , on behalf of all persons who purchased or otherwise acquired shares in the UltraShort ul·tra·short
1. Of or relating to radio waves with a wavelength less than 10 meters (33 feet).
2. Of extremely short duration: an ultrashort flash.
3. Real Estate ProShares fund (the "SRS SRS, SRS-A
see slow-reacting substance. Fund")(NYSE NYSE
See: New York Stock Exchange :SRS), an exchange-traded fund Exchange-traded funds (or ETFs) are Open Ended investment companies that can be traded at any time throughout the course of the day. Typically, ETFs try to replicate a stock market index such as the S&P 500 (e.g. ("ETF ETF
See Exchange Traded Fund.
See exchange-traded fund (ETF). ") offered by ProShares Trust ("ProShares"), pursuant or traceable to ProShares' false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the "Registration Statement") issued in connection with the SRS Fund's shares (the "Class"). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").
The complaint names ProShares; ProShare Advisors LLC (Logical Link Control) See "LANs" under data link protocol.
LLC - Logical Link Control , SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, "Defendants"). ProShares sells its Ultra and UltraShort ETFs as "simple" directional plays. As marketed by ProShares, Ultra ETFs are designed to go up when markets go up; UltraShort ETFs are designed to go up when markets go down. The SRS Fund is one of ProShares' UltraShort ETFs. The SRS Fund seeks investment results that correspond to twice the inverse (-200%) daily performance of the Dow Jones U.S. Real Estate Index ("DJREI"), which measures the performance of the real estate sector of the U.S. equity market. Accordingly, the SRS Fund is supposed to deliver double the inverse return of the DJREI, which fell approximately 39.2 percent from January 2, 2008 through December 17, 2008, ostensibly os·ten·si·ble
Represented or appearing as such; ostensive: His ostensible purpose was charity, but his real goal was popularity. creating a profit for investors who anticipated a decline in the U.S. real estate market. In other words Adv. 1. in other words - otherwise stated; "in other words, we are broke"
put differently , the SRS Fund should have appreciated by 78.4 percent during this period. However, the SRS Fund actually fell approximately 48.2 percent during this period--the antithesis of a directional play.
The complaint alleges the Defendants violated the Securities Act by failing to disclose that the SRS Fund is altogether defective as a directional investment play. Defendants failed to disclose the following risks in the Registration Statement: (1) inverse correlation between the SRS Fund and the DJREI over time would only happen in the rarest of circumstances, and inadvertently if at all; (2) the extent to which performance of the SRS Fund would inevitably diverge from the performance of the DJREI -- i.e., the probability, if not certainty, of spectacular tracking error; (3) the severe consequences of high market volatility on the SRS Fund's investment objective and performance; (4) the severe consequences of inherent path dependency in periods of high market volatility on the SRS Fund's performance; (5) the role the SRS Fund plays in increasing market volatility, particularly in the last hour of trading; (6) the consequences of the SRS Fund's daily hedge adjustment always going in the same direction as the movement of the underlying index, notwithstanding that it is an inverse leveraged ETF; (7) the SRS Fund causes dislocations in the stock market; (8) the SRS Fund offers a seemingly straightforward way to obtain desired exposure, but such exposure is not attainable through the SRS Fund.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased shares in the SRS Fund pursuant to the Registration Statement, you have certain rights, and have until October 5, 2009, to move for Lead Plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to email@example.com or visit our website at www.howardsmithlaw.com.
|Printer friendly Cite/link Email Feedback|
|Date:||Aug 10, 2009|
|Previous Article:||Major League Soccer Stars Blanco and Kljestan Named Cover Athletes for EA SPORTS FIFA Soccer 10 in North America.|
|Next Article:||AmeriChoice of New Jersey Teams with Community Health Centers.|