ProShares Trust II
- Company Name
- ProShares Trust II
- Stock Symbol
- Class Period
- Pursuant to the May 15, 2017 Registration Statement and/or between to May 15, 2017 and February 5, 2018
- Motion Deadline
- March 30, 2019
On January 29, 2019, Robbins Geller Rudman & Dowd LLP filed a complaint alleging violations of the federal securities laws by ProShares Trust II, ProShares Capital Management LLC, certain of their officers and/or directors and the underwriters of the ProShares Short VIX Short-Term Futures ETF shares offered for sale during the Class Period. The class action was commenced in the United States District Court for the Southern District of New York on behalf of purchasers of ProShares Short VIX Short-Term Futures ETF shares pursuant to the May 15, 2017 Registration Statement and/or between May 15, 2017 and February 5, 2018 (the “Class Period”).
ROBBINS GELLER RUDMAN & DOWD LLP FILES CLASS ACTION SUIT AGAINST PROSHARES TRUST II
New York – January 29, 2019 – Robbins Geller Rudman & Dowd LLP (http://www.rgrdlaw.com/cases/proshares/) today announced that a class action has been commenced on behalf of purchasers of ProShares Short VIX Short-Term Futures ETF (“SVXY” or the “Fund”) (NASDAQ:SVXY) pursuant to the May 15, 2017 Registration Statement and/or between May 15, 2017 and February 5, 2018 (the “Class Period”). This action was filed in the Southern District of New York and is captioned Ford v. ProShares Trust II, et al., No. 19-cv-00886.
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased shares of SVXY pursuant to the Registration Statement and/or during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at firstname.lastname@example.org. You can view a copy of the complaint as filed at http://www.rgrdlaw.com/cases/proshares/.
The complaint charges ProShares Trust II, ProShares Capital Management LLC, certain of their officers and/or directors and the underwriters of SVXY shares offered for sale during the Class Period with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. The CBOE Volatility Index, or “VIX,” seeks to measure the expected volatility of the S&P 500. The Fund is benchmarked to the S&P 500 VIX Short-Term Futures Index (the “Index”), an investable index of VIX futures contracts. The investment objective for the Fund during the Class Period was to achieve results for a single day that matched (before fees and expenses) the inverse (-1x) of the daily performance of the Index.
The complaint alleges that, in the Registration Statement and during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the risks of investing in the Fund. Specifically, the Registration Statement failed to disclose that the Fund was threatened with catastrophic losses as a result of the Fund’s flawed design and the low-volatility environment and acute liquidity risks that existed during the Class Period. In addition, during the Class Period defendants made substantially similar false and misleading statements as those contained in the Registration Statement in numerous financial reports and draft prospectuses and registration statements filed with the SEC.
On Monday, February 5, 2018, the stock market declined, with the S&P 500 Index (“SPX”) dropping 4% amid concerns about rising bond yields and higher inflation. The market turbulence triggered the flaw concealed in the SVXY, as the crowded market for VIX futures contracts spiraled out of control. The VIX rocketed upward to a high of 38.80 during the day, from a close of 17.31 on Friday, February 2, 2018 – a 124% daily spike. The Index experienced a similar surge, as the price of the VIX futures contracts on which it was based jumped at the end of the trading day. The price of SVXY shares, which track the inverse of the Index, declined. By the close of trading on February 5, 2018, the price of SVXY had dropped to $71.82 per share, from the prior close of $105.60 per share, a 32% decline. By market open on February 6, 2018, the price of SVXY shares had plummeted to a low of $11.11, a one-day decline of 90% from the prior day’s high of $107.19 per share.
Plaintiff seeks to recover damages on behalf of all purchasers of SVXY shares pursuant to the Registration Statement and/or during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller is one of the world’s leading law firms representing investors in securities litigation. With 200 lawyers in 10 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history. For five consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in both amount recovered for shareholders and total number of class action settlements. Robbins Geller attorneys have helped shape the securities laws and recovered tens of billions of dollars on behalf of aggrieved victims. Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide. Please visit http://www.rgrdlaw.com for more information.
Robbins Geller Rudman & Dowd LLP
Samuel H. Rudman, 800-449-4900
David A. Rosenfeld