Stull, Stull & Brody Files Class Action Lawsuit On Behalf of Investors in ProShares Ultra Oil & Gas Fund

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November 5, 2009 12:17pm ETF BASIC NEWS

lawsuit-filed(BUSINESS WIRE)–The law firm of Stull, Stull & Brody announces that it has filed a class action complaint in the U.S. District Court for the Southern


 District of New York on behalf of all persons who purchased or otherwise acquired shares in the ProShares Ultra Oil & Gas Fund (the “DIG Fund”) (NYSE: DIG), an 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 shares of the DIG 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 ProShares DIG Fund, Stull, Stull & Brody is also investigating claims on behalf of investors in other ProShares leveraged funds (the “Funds”) (see list below), such as whether ProShares 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.

         

Fund

     

Ticker Symbol

UltraShort QQQ       (NYSE: QID)
UltraShort Dow30       (NYSE: DXD)
UltraShort S&P500       (NYSE: SDS)
UltraShort Russell3000       (NYSE: TWQ)
UltraShort MidCap400       (NYSE: MZZ)
UltraShort SmallCap600       (NYSE: SDD)
UltraShort Russell2000       (NYSE: TWM)
UltraPro Short S&P500       (NYSE: SPXU)
UltraShort Russell1000 Value       (NYSE: SJF)
UltraShort Russell1000 Growth       (NYSE: SFK)
UltraShort Russell MidCap Value       (NYSE: SJL)
UltraShort Russell MidCap Growth       (NYSE: SDK)
UltraShort Russell2000 Value       (NYSE: SJH)
UltraShort Russell2000 Growth       (NYSE: SKK)
UltraShort Basic Materials       (NYSE: SMN)
UltraShort Consumer Goods       (NYSE: SZK)
UltraShort Consumer Services       (NYSE: SCC)
UltraShort Health Care       (NYSE: RXD)
UltraShort Industrials       (NYSE: SIJ)
UltraShort Oil & Gas       (NYSE: DUG)
UltraShort Semiconductors       (NYSE: SSG)
UltraShort Technology       (NYSE: REW)
UltraShort Telecommunications       (NYSE: TLL)
UltraShort Utilities       (NYSE: SDP)
UltraShort MSCI EAFE       (NYSE: EFU)
UltraShort MSCI Emerging Markets       (NYSE: EEV)
UltraShort MSCI Europe       (NYSE: EPV)
UltraShort MSCI Pacific ex-Japan       (NYSE: JPX)
UltraShort MSCI Brazil       (NYSE: BZQ)
UltraShort FTSE/Xinhua China 25       (NYSE: FXP)
UltraShort MSCI Japan       (NYSE: EWV)
UltraShort MSCI Mexico Investable Market       (NYSE: SMK)
UltraShort 7-10 Year Treasury       (NYSE: PST)
UltraShort 20+ Year Treasury       (NYSE: TBT)
UltraShort DJ-UBS Commodity       (NYSE: CMD)
UltraShort DJ-UBS Crude Oil       (NYSE: SCO)
UltraShort Gold       (NYSE: GLL)
UltraShort Silver       (NYSE: ZSL)
UltraShort Euro       (NYSE: EUO)
UltraShort Yen       (NYSE: YCS)
Ultra QQQ       (NYSE: QLD)
Ultra Dow30       (NYSE: DDM)
Ultra S&P500       (NYSE: SSO)
Ultra Russell3000       (NYSE: UWC)
Ultra MidCap400       (NYSE: MVV)
Ultra SmallCap600       (NYSE: SAA)
Ultra Russell2000       (NYSE: UWM)
UltraPro S&P500       (NYSE: UPRO)
Ultra Russell1000 Value       (NYSE: UVG)
Ultra Russell1000 Growth       (NYSE: UKF)
Ultra Russell MidCap Value       (NYSE: UVU)
Ultra Russell MidCap Growth       (NYSE: UKW)
Ultra Russell2000 Value       (NYSE: UVT)
Ultra Russell2000 Growth       (NYSE: UKK)
Ultra Basic Materials       (NYSE: UYM)
Ultra Consumer Goods       (NYSE: UGE)
Ultra Consumer Services       (NYSE: UCC)
Ultra Health Care       (NYSE: RXL)
Ultra Industrials       (NYSE: UXI)
Ultra Real Estate       (NYSE: URE)
Ultra Semiconductors       (NYSE: USD)
Ultra Technology       (NYSE: ROM)
Ultra Telecommunications       (NYSE: LTL)
Ultra Utilities       (NYSE: UPW)
Ultra DJ-UBS Commodity       (NYSE: UCD)
Ultra DJ-UBS Crude Oil       (NYSE: UCO)
Ultra Gold       (NYSE: UGL)
Ultra Silver       (NYSE: AGQ)
Ultra Euro       (NYSE: ULE)
Ultra Yen       (NYSE: YCL)
Ultra MSCI EAFE       (NYSE: EFO)
Ultra MSCI Emerging Markets       (NYSE: EET)
Ultra FTSE/Xinhua China 25       (NYSE: XPP)
Ultra MSCI Japan       (NYSE: EZJ)
         

The complaint names ProShares, ProShare Advisors LLC, 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 DIG Fund is one of ProShares’ Ultra ETFs. The DIG Fund seeks investment results that correspond to twice (200%) the daily performance of the Dow Jones U.S. Oil & Gas Index (“DJUSEN”). Accordingly, the DIG Fund is supposed to deliver double the return of the DJUSEN, which increased approximately 3.84 percent from January 1, 2009 through July 30, 2009, ostensibly creating a profit for investors who anticipated a rise in the DJUSEN. In other words, the DIG Fund should have appreciated by over 7.68 percent during this period. However, the DIG Fund fell approximately 1.35 percent during this period.

The complaint alleges the Defendants violated the Securities Act by failing to disclose the following risks, inter alia, in the Registration Statement: (1) if DIG Fund shares were held for a time period longer than one day, the likelihood of catastrophic losses was huge; and (2) the extent to which performance of the DIG Fund would inevitably diverge from the performance of the DJUSEN — i.e., the overwhelming probability, if not certainty, of spectacular divergence.

If you purchased or otherwise acquired ProShares DIG 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 January 4, 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.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

 

Contacts

Stull, Stull & Brody
Aaron Brody, Esq., 1-800-337-4983
Fax: 1-212-490-2022
[email protected]
www.ssbny.com

 

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