, the ETF arm of the ProFunds Group, is drawing flack from its investors again. The Pomerantz
law group is heading up an investigation into the ProShares UltraShort Basic Materials Fund
(the “SMN” Fund).
A ProShares spokesman declined to comment for this story.
What's the issue? Pomeranz wonders about the ETF's potentially false and misleading registration statement, prospectuses, and statements of additional information issued in connection with the fund's shares.
The investigation mirrors several suits brought by other law firms against other ProShares UltraShort ETFs, including: Dow 30
and Real Estate
Specifically, the Pomeranz investigation surrounds whether the registration statement filed by ProShares for the UltraShort Basic Materials fund did not adequately disclose that investors should only hold SMN shares for a single trading day and that shares of the fund were not an appropriate hedge against a decline in the U.S.-based basic materials stock. The “SMN” Fund is an inverse leveraged ETF designed to seek returns twice the inverse performance of the Dow Jones U.S. Basic Materials Index.
Leading the investigation is Teresa Webb
of Pomerantz, Haudek, Grossman & Gross LLP.
Company Press Release
NEW YORK, Jan. 7, 2010 -- Pomerantz Haudek Grossman & Gross LLP is representing investors of ProShares' Funds in a number of class actions. The Firm is also investigating claims against ProShares' UltraShort Basic Materials Fund ("the SMN Fund") (NYSE:SMN - News ), on behalf of all persons who purchased or otherwise acquired shares in the SMN Fund, 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 issued in connection with the SMN Fund's shares.
The SMN Fund is an inverse leveraged ETF that seeks investment returns that are twice the inverse performance of the Dow Jones U.S. Basic Materials Index. The investigation centers on the allegation that the registration statement filed by ProShares failed to adequately disclose that SMN shares should not be held more than a single trading day and were not an appropriate hedge against a decline in U.S.-based basic materials stocks.
Those who invested are advised to contact Teresa Webb at 888-476-6529 or 212-661-1100 or firstname.lastname@example.org. Pomerantz has prosecuted securities fraud claims for 70 years, and is regarded as one of the country's premier class action firms. The firm has offices in New York City, Chicago, Washington, D.C., Burlingame, CA. and Columbus, Ohio.
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