Notice is hereby given that a class action lawsuit has been commenced on
behalf of all persons who purchased or otherwise acquired shares in the
ProShares UltraShort Russell 2000 Growth Fund (the “SKK Fund”) (NYSE: SKK), 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 SKK 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 the ProShares SKK 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.
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 SKK Fund is one of ProShares’ UltraShort ETFs. The SKK Fund
seeks daily investment results that correspond to twice (200%) the
inverse (opposite) of the daily performance of the Russell 2000 Growth
Index (the “Index”). Accordingly, the SKK Fund is supposed to deliver
twice the inverse return of the Index. The Complaint alleges that the
SKK Fund is not a simple investment vehicle, did not track twice the
inverse of the Index, and did not perform as described over a period
longer than one trading day. As a result, even on a daily basis,
investors in the SKK Fund have been shocked to learn that their
supposedly safe play has caused them substantial losses.
The complaint alleges that ProShares and the other defendants violated
the Securities Act by failing to disclose the following risks, among
others, in the Registration Statement: (1) if the SKK 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 SKK Fund would inevitably diverge from the performance of the Index
-- i.e., the overwhelming probability, if not certainty, of spectacular
divergence.
If you purchased or otherwise acquired ProShares SKK 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 April
14, 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 45thStreet,
New York, NY 10017. You can also visit our website at www.ssbny.com
.
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.
