(OPENPRESS) September 6, 2009 -- An investor in ProShares UltraShort Financials (ETF) (Public, NYSE:SKF) has filed a lawsuit 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 Financials ProShares fund, over alleged violations of Federal Securities laws Sections 11 and 15 of the Securities Act of 1933 by ProShares Trust, ProShare Advisors LLC, SEI Investments Distribution Co and others.
Those who purchased ProShares UltraShort Financials (ETF) (Public, NYSE:SKF), pursuant or traceable to ProShares Trust's Registration Statement, Prospectuses, and Statements of Additional Information issued in connection with the UltraShort Financials ProShares fund' s shares, have certain options and there are short and strict deadlines running. Deadline: October 20, 2009. SKF investors, especially SKF investors with losses in excess of $200,000 on purchases of the SKF Fund, should contact the Shareholders Foundation, Inc. at Email: mail(at)shareholdersfoundation.com or call us at: +1 (858) 779 - 1554. According to the complaint the plaintiff alleges that ProShares Trust, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier violated securities laws by failing to disclose that the UltraShort Financials ProShares fund is altogether defective as a directional investment play, failing to perform anywhere near investors' reasonable expectations. ProShares Trust sells its Ultra and UltraShort ETFs as "simple" directional plays. ProShares UltraShort Financials, formerly UltraShort Financials ProShares, seeks investment results that correspond to twice the inverse daily performance of the Dow Jones U.S. Financials Index, which measures the performance of the financial services industry of the U.S. equity market.
The plaintiff accuses that ProShares Trust marketed Ultra ETFs as designed to go up when markets go up and UltraShort ETFs as designed to go up when markets go down. According to the complaint ProShares UltraShort Financials Fund is supposed to deliver double the inverse return of the DJFIX, which fell approximately 51.03 percent from January 2, 2008 through December 17, 2008, ostensibly creating a sizable profit for investors who anticipated a decline in the U.S. financial services industry, or in other words, the ProShares UltraShort Financials Fund should have appreciated by 102.06 percent during this period, but in reality only appreciated by approximately 1.06 percent during this period.
Contact Info
Shareholders Foundation, Inc.
Phone: +1 (858) 779 - 1554
Website: http://www.ShareholdersFoundation.com
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
