Bringing you live news and features since 2006 

Class action filed against ProShares UltraShort S&P 500 Fund

RELATED TOPICS​

Murray, Frank & Sailer has filed a complaint on behalf of all individuals and institutions who purchased shares in the UltraShort S&P 500 Fund offered by ProShares Trust pursuant or traceable to ProShares’s false and misleading registration statement issued in connection with shares of the SDS Fund.

The class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933.

The complaint filed in the Southern District of New York names ProShares, ProShare Advisors, SEI Investments Distribution, Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds III, Michael Wachs and Simon D. Collier as defendants.

The SDS Fund is one of ProShares’s UltraShort ETFs, which ProShares claims are designed to go up when markets go down. Specifically, the SDS Fund seeks investment results that correspond to twice the inverse of the daily performance of the S&P 500 Index.

However, although the index gained approximately six per cent from 2 January 2009 through 31 July 2009, the SDS Fund fell approximately 29 per cent during this period, generating much greater losses than ProShares claimed.

The complaint alleges that the defendants violated the Securities Act by failing to disclose that if SDS Fund shares are held for a time period longer than one day, the performance of those shares does not track the performance of the index.

In addition, the complaint alleges that if SDS Fund shares are held for a time period longer than one day, there is a significant likelihood of catastrophic losses.

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by