Investor Alert: Class Action Filed Against Easterly ROCMuni Fund by Bronstein, Gewirtz & Grossman

Investor Alert: Class Action Filed Against Easterly ROCMuni Fund

In a significant development for investors of the Easterly ROCMuni High Income Municipal Bond Fund, Bronstein, Gewirtz & Grossman, LLC, a prominent national law firm, has announced the initiation of a class action lawsuit. This legal action is aimed at addressing alleged violations of federal securities laws and provides a pathway for those affected by substantial losses to seek recourse.

Who is Affected?

The lawsuit pertains to all individuals and entities that purchased or acquired securities of the Easterly ROCMuni Fund, also previously known as Principal Street High Income Municipal Fund, between May 5, 2023, and June 12, 2025. Investors falling within this timeline are encouraged to participate in the lawsuit, with invitations to join available on the firm's website.

Allegations of Misconduct

The core of the complaint revolves around a series of serious allegations against the Fund and its officers. Investors claim that throughout the designated period, statements made by the defendants were materially misleading, leading to various financial misrepresentations. Specifically, the complaint outlines that:

1. Inflated Asset Valuation: The Fund allegedly recorded portfolio assets at inflated prices that did not accurately reflect their fair market value, impacting investors' perception of the Fund's stability and performance.

2. Flawed Valuation Methodology: It is claimed that the methodology implemented for pricing and valuation was fundamentally flawed, causing the net asset value (NAV) and individual asset evaluations to be systematically inflated.

3. Illiquid Asset Overexposure: Reports indicate that the Fund had a more considerable exposure to illiquid assets than indicated in official documentation, raising red flags about their risk management.

4. Correlation and Diversification Misrepresentation: Claims also point to the misleading nature of the Fund's asset correlation and diversification, suggesting that these critical factors were not communicated accurately to investors.

5. Material Risks: As a direct result of these issues, the Fund's stated NAV and historical performance were allegedly grossly overstated, concealing a significant risk of a sudden drop in share prices.

The lawsuit suggests that the offering materials distributed during this period did not comply with regulatory standards and contained misleading statements, contributing to investors' losses.

Opportunities for Investors

Recognizing these grievances, Bronstein, Gewirtz & Grossman is urging affected investors to come forward. Those who believe they qualify can request to be appointed as lead plaintiffs, with a deadline set for September 22, 2025. It is important to note that participation as a lead plaintiff is not a requirement to share in any potential recovery from the action.

No Upfront Costs

Importantly, investors should be aware that these legal services are provided on a contingency fee basis. This means that costs incurred for legal representation will only be recovered from a favorable outcome, ensuring no financial burden is placed on the investors during the legal proceedings.

Why Choose Bronstein, Gewirtz & Grossman?

Bronstein, Gewirtz & Grossman, LLC is recognized nationwide for representing investors in securities fraud cases and derivative suits. With a track record of recovering hundreds of millions for investors over the years, the firm stands ready to advocate for those whose investments have been jeopardized by alleged misconduct.

In conclusion, the class action lawsuit against Easterly ROCMuni High Income Municipal Bond Fund underscores the importance of diligence in investment practices. Investors are encouraged to consult with legal experts to explore their options and understand their rights amidst such allegations of financial mismanagement. For updates, interested parties can follow the firm on LinkedIn, X, Facebook, or Instagram.

For more information about the lawsuit and to view a copy of the complaint, visit the firm’s website at bgandg.com/RMJAX or contact legal representatives from Bronstein, Gewirtz & Grossman directly at 332-239-2660.