(Source: Business Wire)
The law firm of Stull, Stull & Brody announced 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 UltraShort Oil and Gas Fund (the "DUG Fund") (NYSE: DUG),
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 UYG Fund (the "Class"). The action seeks
remedies under Sections 11 and 15 of the Securities Act of 1933 (the
"Securities Act").
In addition to the action concerning the ProShares DUG Fund, Stull,
Stull & Brody is currently investigating potential claims on behalf of
investors in other ProShares leveraged funds (the "Funds") (listed
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)
Ultra Financials Fund (NYSE: UYG)
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 Oil & Gas (NYSE: DIG)
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)
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The complaint in the ProShares DUG Fund action 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 DUG Fund
is one of ProShares' UltraShort ETFs. The DUG Fund seeks investment
results that correspond to twice the inverse ( -- 200%) daily performance
of the Dow Jones U.S. Oil and Gas Index ("DJOGI"). Accordingly, the DUG
Fund is supposed to deliver double the inverse return of the DJOGI,
which fell approximately 37 percent from January 2, 2008 through
December 31, 2008, ostensibly creating a profit for investors who
anticipated a decline in the U.S. Oil and Gas market. In other words,
the DUG Fund should have appreciated by over 74 percent during this
period. However, the DUG Fund fell approximately 30 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 DUG 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 DUG Fund would inevitably diverge
from the performance of the DJOGI -- i.e., the overwhelming probability,
if not certainty, of spectacular divergence.
If you purchased or otherwise acquired ProShares DUG 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. 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 ssbny@aol.com,
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.
A service of YellowBrix, Inc.
