Market Overview

Nationally Ranked Litigation Firm Labaton Strongly Encourages United States Oil Fund LP (USO) Investors With Losses of More Than $250,000 in Its ETF Shares or Options to Contact the Firm and Announces Investigation

Share:

Labaton Sucharow LLP, a leading and award winning investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders and option holders of the United States Oil Fund LP (ARCA:USO) resulting from allegations that USO may have issued materially misleading business information to the investing public.

The United States Oil Fund (USO) is an exchanged-traded fund (ETF) that seeks to provide investment results corresponding to the daily price movements of West Texas Intermediate (WTI) light, sweet crude oil. The USO is designed for investors who are long or bullish on short-term futures contracts on West Texas Intermediate (WTI) crude oil.

On April 20, the May contract for WTI crude closed at -$37.63 a barrel, a one-day drop of $55.90 or 300%. This was a historic and unprecedented disruption in the oil markets.

In its March 23, 2020 registration statement, USO issued the following statement:

The crude oil market was primarily in contango the first half of 2019 and in backwardation from August through December 31, 2019…… USCF does not anticipate letting USO's Oil Futures Contracts expire and taking delivery of the underlying commodity. Instead, USCF will close existing positions, e.g., when it changes the Benchmark Oil Futures Contracts or Other Oil-Related Investments or it otherwise determines it would be appropriate to do so and reinvests the proceeds in new Oil Futures Contracts or Other Oil-Related Investments. Positions may also be closed out to meet orders for Redemption Baskets and in such case proceeds for such baskets will not be reinvested.

Labaton is investigating whether such statements were false and misleading, given that, among other things, USO held approximately 25% of the market of May WTI contracts.

On April 21, trading in USO was temporarily halted and share value fell 25.1% to close at a record low of $2.81. USO is down over 78% year-to-date and down over 96% since its inception.

If you are an investor in USO shares or options, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at recover@labaton.com.

About the Firm

Labaton Sucharow LLP is one of the world's leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at http://www.labaton.com.

View Comments and Join the Discussion!
 
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com