Stockholders v ProShares Trust : ProShare Advisors LLC : UltraShort MSCI Emerging Markets ProShares Fund
Stockholders File Lawsuit Against ProShares Trust : ProShare Advisors LLC : UltraShort MSCI Emerging Markets ProShares Fund
According to a press release dated September 10, 2009, the complaint alleges the Defendants violated the Securities Act by failing to disclose that the EEV Fund is altogether defective as a securities product and as directional investment play. Defendants failed to disclose the following risks in the Registration Statement: (1) inverse correlation between the EEV Fund and the MSCI over time would only happen in the rarest of circumstances, and inadvertently if at all; (2) the extent to which performance of the EEV Fund would inevitably diverge from the performance of the MSCI -- i.e., the probability, if not certainty, of spectacular tracking error; (3) the severe consequences of high market volatility on the EEV Fund's investment objective and performance; (4) the severe consequences of inherent path dependency in periods of high market volatility on the EEV Fund's performance; (5) the role the EEV Fund plays in increasing market volatility, particularly in the last hour of trading; (6) the consequences of the EEV 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 EEV Fund causes dislocations in the stock market; (8) the EEV Fund offers a seemingly straightforward way to obtain desired exposure, but such exposure is not attainable through the EEV Fund.
This case also involves the ProShares' Ultra and UltraShort Funds: UltraShort Oil and Gas (NYSE: DUG); Ultra Oil and Gas Funds (NYSE:DIG); UltraShort Financials (NYSE: SKF); Ultra Financials (NYSE: UYG); UltraShort Real Estate ProShares (NYSE: SRS); Ultra Real Estate ProShares (NYSE: URE); UltraShort S&P 500 (NYSE: SDS); Ultra S&P 500; UltraShort Dow30 (PS Dow 30) (NYSE: DXD); Ultra Dow 30 (PS Ultra Dow 30); UltraShort MidCap 400 (NYSE: MZZ); Ultra MidCap 400 (NYSE: MVV); UltraShort Basic Materials (SMN); Ultra Basic Materials (UYM); Ultra Consumer Services (UCC); UltraShort Technology (REW); Ultra Technology (PS Ultra Tech); UltraShort Telecom (TLL); Ultra Telecom (LTL); and UltraShort FTSE/Xinhua (FXP).
If you bought ProShares Trust : ProShare Advisors LLC : UltraShort MSCI Emerging Markets ProShares Fund securities and would like to obtain information about the ProShares Trust : ProShare Advisors LLC : UltraShort MSCI Emerging Markets ProShares Fund lawsuit, then you are invited to call Kahn Swick & Foti, LLC toll free at (866) 467-1400 extension 100 to speak with an attorney or visit www.ksfcounsel.com.
