GILMAN AND PASTOR IS PURSUING CLAIMS
CONCERNING PROSHARES ULTRASHORT FUNDS
On July 15, 2009, the Massachusetts Secretary of State
announced that Massachusetts had begun a probe into
the sales practices of ProShares. ProShares Ultra and
UltraShort Funds have been sold by many broker-dealers.
However, recently, many including Edward Jones & Co.,
Charles Schwab and Morgan Stanley have now issued
alert bulletins and indicated they will no longer offer such
investments.
For nearly 30 years, Gilman and Pastor, LLP has been one
of the nation’s leading firms representing investors in
securities fraud actions and litigation to correct egregious
corporate practices and breaches of fiduciary duty to
investors. To discuss your investment losses in confidence,
please call 888-252-0048 or fill out the form below.
Gilman and Pastor, LLP Announces Class Action
Lawsuits Against ProShares For Defective Securities
Products
Gilman and Pastor is also representing investors and
prosecuting lawsuits and claims in many of the Ultra
ProShares Funds and UltraShort ProShares Funds, which
have subjected investors to substantially more risk than
was disclosed and resulted in enormous losses by
investors. These leveraged ETFs include but are not
limited to the following ProShares Funds in which investors
have suffered substantial losses.
Plaintiffs allege the following ProShares Ultra and
UltraShort ETFs are defective securities products, which
contained material omissions of fact and which could not
perform in accordance with investors’ reasonable
expectations. These funds include but are not limited to:
• ProShares UltraShort Real Estate ETF (SRS)
• ProShares Ultra Financials ETF (UYG)
• ProShares UltraShort Dow 30 ETF (DXD)
• ProShares UltraShort Financials ETF (SKF)
• ProShares UltraShort FTSE/Xinhua China 25 ETF
(FXP)
• ProShares UltraShort Gold ETF (GLL)
• ProShares UltraShort DJ-AIG Crude Oil ETF (SCO)
• ProShares UltraShort Oil & Gas ETF (DUG)
• ProShares UltraShort MSCI Emerging Markets
ETF (EEV)
“We have been retained to represent investors who have
identified certain ProShares Ultra and UltraShort Exchange
Traded Funds that made serious misstatements and
omissions of material fact and deceived investors as to the
risks of investing in these funds,” Gilman and Pastor LLP
said in a statement.
ProShares touted its UltraShort ETFs including those listed
above, as simple-to-execute investments which go up
when markets go down. Although ProShares touts its
securities and cloaks them with certainty due to allegedly
reliable mathematical formulas, their math does not add
up. The results demonstrate that such funds do not
perform as reasonably expected by any investors who use
them for more than one trading session or one day. Once
an index rises or falls and a leveraged ETF moves in the
opposite direction, they no longer share their original
mathematical relationship and performance does not hold
after the first day, Gilman and Pastor said in a statement.
Holding the funds for more than one day or trading session
will most certainly lead to enormous losses.
ProShares has now conceded that mathematical
compounding actually prevents these funds from achieving
their stated investment objectives over a period of time
greater than one day.
Plaintiffs allege that ProShares Ultra and UltraShort ETFs
are defective and that the ProShares financial advisory firm
and affiliates did not reveal the serious risks involved from
investing in these ETFs, resulting in enormous losses.
In June 2009, FINRA issued an alert bulletin and
Regulatory Notice 09-31, which cautioned that leveraged
ETFs are extremely confusing products and the marketing
and sale of these products to unsophisticated retail
investors is dangerous.
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and Pastor LLP, does not create an attorney-client
relationship between you and Gilman and Pastor LLP.
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