Notice is hereby given that a class action has been commenced on behalf of all persons who purchased or otherwise acquired shares in the Direxion Energy Bear 3X Shares Fund (the “ERY Fund”) (NYSE: ERY), an exchange-traded fund (“ETF”) offered by Direxion Shares ETF Trust (“Direxion”), pursuant or traceable to Direxion’s false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the “Registration Statement”) issued in connection with shares of the ERY Fund (the “Class”). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”).
In addition to the claims concerning the Direxion ERY Fund, Stull, Stull & Brody is also investigating claims on behalf of investors in other Direxion leveraged funds (the “Funds”) (see list below), such as whether Direxion failed to disclose in its registration statements: (i) that if shares of the Funds were held for a time period longer than one day, the likelihood of massive losses was huge; and (ii) the extent to which performance of the Funds would invariably diverge from the performance of the benchmark.
|Daily Large Cap Bull 3x Shares||(BGU)|
|Daily Mid Cap Bull 3x Shares||(MWJ)|
|Daily Small Cap Bull 3x Shares||(TNA)|
|Daily Energy Bull 3x Shares||(ERX)|
|Daily Financial Bull 3x Shares||(FAS)|
|Daily Real Estate Bull 3x Shares||(DRN)|
|Daily Technology Bull 3X Shares||(TYH)|
|Daily Developed Markets Bull 3X Shares||(DZK)|
|Daily Emerging Markets Bull 3X Shares||(EDC)|
|Daily 10-Year Treasury Bull 3x Shares||(TYD)|
|Daily 30-Year Treasury Bull 3x Shares||(TMF)|
|Daily Large Cap Bear 3x Shares||(BGZ)|
|Daily Mid Cap Bear 3x Shares||(MWN)|
|Daily Small Cap Bear 3x Shares||(TZA)|
|Daily Real Estate Bear 3x Shares||(DRV)|
|Daily Technology Bear 3X Shares||(TYP)|
|Daily Developed Markets Bear 3X Shares||(DPK)|
|Daily Emerging Markets Bear 3x Shares||(EDZ)|
|Daily 10-Year Treasury Bear 3x Shares||(TYO)|
|Daily 30-Year Treasury Bear 3x Shares||(TMV)|
The ERY Fund seeks investment results that correspond to three times (300%) the inverse (or opposite) of the daily performance of the Russell 1000 Energy Index (the “Russell 1000”). Russell 1000 fell approximately 11% from November 5, 2008 through April 9, 2009. However, instead of increasing 33% over the same time period, the ERY Fund fell approximately 54%.
The Complaint alleges that given the spectacular tracking error between the performance of the ERY Fund and its benchmark index, investors in the ERY Fund have been shocked to learn that their supposedly correct play on the energy sector has caused them substantial losses. The fact that Plaintiff and the Class sought to protect their assets by investing their monies on the correct directional play has been rendered meaningless. The ERY Fund is, therefore, the equivalent of a defective product. The ERY Fund did not do what it was designed to do, represented to do, or advertised to do.
If you purchased or otherwise acquired Direxion ERY Fund shares, and either lost money on the transaction or still hold the shares, you may apply to the Court to serve as lead plaintiff in the action no later than March 15, 2010. A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 40 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.
If you wish to discuss this action or the investigation regarding any of the Funds listed above, or if you have any questions concerning this notice or your rights or interests with respect to these matters, please contact Aaron Brody, Esq. at Stull, Stull & Brody by e-mail at [email protected], or by calling toll-free 1-800-337-4983, or by fax to 1-212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.
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