Notice to Investors of Class Action Filed by Gilman and Pastor LLP Against ProShares UltraShort Oil and Gas Fund (AMEX: DUG) and
October 27 2009 - 11:11AM
Marketwired
Gilman and Pastor LLP filed two class action lawsuits on October
23, 2009 in the United States 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) (AMEX: DUG) and Ultra Financials ProShares Fund (the
"UYG Fund") (AMEX: UYG) (collectively "the Funds"), exchange-traded
funds ("ETFs") 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 the Funds' shares (the "Class"). The Class is seeking recovery
for investors under Sections 11 and 15 of the Securities Act of
1933 (the "Securities Act").
The complaints name 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 (200%) the
inverse (opposite) of the daily performance of the Dow Jones Oil
and Gas Index ("DJOGI"), which measures the performance of the
energy sector of the U.S. equity markets. For example, 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 17, 2008, ostensibly creating a profit for investors who
anticipated a decline in the performance of the U.S. equity
markets. In other words, the DUG Fund should have appreciated by 74
percent during this period. However, the DUG Fund actually fell
approximately 30 percent during this period.
The UYG Fund is one of ProShares' Ultra ETFs. The UYG Fund seeks
investment results that correspond to twice (200%) the daily
performance of the Dow Jones U.S. Financials Market Index
("DJUSFI"), which measures the performance of the financials
industry of the U.S. equity markets. For example, the UYG Fund is
supposed to deliver double the daily return of the DJUSFI, which
increased approximately 1.47 percent from January 2, 2009 through
July 31, 2009, ostensibly creating a profit for investors who
anticipated an increase in the performance of the financial
markets. In other words, the UYG Fund should have appreciated by
2.9 percent during this period. However, the UYG Fund actually fell
approximately 25 percent during this period.
The complaints allege the Defendants violated the Securities Act
by failing to disclose that the Funds are altogether defective as a
securities product and as directional investment play. Defendants
failed to disclose the following risks in the Registration
Statement: (1) if the Funds shares were held for a time period
longer than one day, the likelihood of catastrophic losses were
substantial; (2) the extent to which performance of the Funds would
inevitably diverge from the performance of the Index -- i.e., the
probability, if not certainty, of spectacular tracking error; (3)
the severe consequences of high market volatility on the Funds'
investment objective and performance; and (4) the severe
consequences of inherent path dependency in periods of high market
volatility on the Funds' performance.
If you purchased or otherwise acquired shares in the DUG Fund or
UYG Fund and either lost in excess of $200,000. or still hold the
shares, you may wish to join in the action to serve as Lead
Plaintiff. In order to do so, you must meet certain requirements
set forth in the applicable law and file appropriate papers no
later than November 23, 2009. If you have any questions about the
lawsuit, please contact Kenneth G. Gilman, Esq. of Gilman and
Pastor, at (888) 252-0048, or via email at
info@gilmanpastor.com.
A Lead Plaintiff is a court-appointed representative for absent
class members. If you are a class member and there is a recovery
for the class, you can share in that recovery as an absent class
member. You may retain counsel of your choice to represent you in
this action. If you are a member of the class, you can view a copy
of the complaints and join this class action online at
http://proshares-ultrashort-dug.com and
http://proshares-ultra-uyg.com
Plaintiffs are represented by the law firm Gilman and Pastor
LLP. Gilman and Pastor LLP is one of the country's premier national
law firms that represent institutional and individual investors in
class action, complex securities and corporate governance
litigation. The firm has been a champion of investor rights for
over 30 years and has been recognized for its reputation for
excellence by the courts.
CONTACTS: Kenneth G. Gilman, Esq. Attorney Gilman and Pastor,
LLP 28100 Bonita Grande Drive Suite 105 Bonita Springs, FL 34135
www.gilmanpastor.com info@gilmanpastor.com (888) 252-0048 (508)
291-3258 Fax
ProShares UltraShort Ene... (AMEX:DUG)
Historical Stock Chart
From Jul 2024 to Aug 2024
ProShares UltraShort Ene... (AMEX:DUG)
Historical Stock Chart
From Aug 2023 to Aug 2024