Stock
12 years ago
U.S. District Court Dismisses Class Action Lawsuit against ProShares
ProShares announced today that on September 10, 2012, the United States District Court for the Southern District of New York dismissed, in its entirety, the class action lawsuit filed against the Company in 2009. The court rejected the plaintiffs’ claim that certain risks associated with holding leveraged and inverse ETFs for periods longer than one day were omitted from the disclosures set forth in the registration statements.
“We have maintained since the beginning of this case that the allegations were wholly without merit, and we are pleased that the claims have been dismissed in their entirety,” said Amy Doberman, ProShares’ General Counsel.
“ProShares has demonstrated a long-standing commitment to educating investors about our products and their risks and benefits, so it is gratifying that Judge Koeltl’s ruling rests on the strength and quality of our disclosures.”
In his order dismissing the case, Judge John G. Koeltl ruled that the registration statements accompanying ProShares leveraged and inverse ETFs stated “in plain English” their daily performance objectives and clearly disclosed the possibility that “the ETFs’ value could diverge significantly from the underlying index when the ETFs were held for longer than one day.”
Judge Koeltl’s ruling concluded that ProShares disclosures “addresse[d] the relevant risk directly” in a way that any “reasonably prudent investor would have understood.”
About ProShares
Offering the nation's largest lineup of alternative ETFs, ProShares enables investors to go beyond the limitations of conventional investing and meet today’s market challenges. Each ProShares ETF provides access to an alternative investment strategy delivered with the liquidity, transparency and cost effectiveness of an ETF. ProShares' lineup of 138 ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged and inverse), and Inflation and Volatility ETFs.
ProShares’ geared (leveraged and inverse) ETFs seek returns that are 3x, 2x, -1x, -2x or -3x of the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. These effects may be more pronounced in funds with larger or inverse multiples and in funds with volatile benchmarks. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily.
Carefully consider the investment objectives, risks, charges and expenses of ProShares before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. Obtain them from your financial advisor or broker/dealer representative or by visiting ProShares.com.
ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor.
Penny Roger$
12 years ago
SEI Investments Company (SEI) is a global provider of investment processing, investment management, and investment operations solutions. The Company’s segments include Private Banks, Investment Advisors, Institutional Investors, Investment Managers and Investments in New Businesses. Its wealth management business solutions include investment processing outsourcing solutions for banks, trust companies, independent wealth advisers, and investment managers; investment management programs for affluent individual investors and for institutional investors, including retirement plan sponsors, and not-for-profit organizations, and investment operations outsourcing solutions for investment management firms, banks and investment companies that sponsor and distribute mutual funds, hedge funds, and alternative investments. In February 2012, the Company acquired the assets of NorthStar Systems International, Inc.
http://www.google.com/finance?q=SEIC
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