Easterly ROCMuni Fund Investors Can Lead Class Action Against Securities Fraud

Investors Have a Chance to Lead a Class Action Against Easterly ROCMuni Fund

In recent news, the Law Offices of Howard G. Smith have opened the doors for investors who have incurred significant losses in the Easterly ROCMuni High Income Municipal Bond Fund to potentially lead a securities fraud class action lawsuit. This opportunity has arisen as allegations against the fund's management suggest that there was a lack of transparency regarding the valuation of its assets, leading to misleading information about the fund's actual financial health and performance.

Background of the Allegations

The class action lawsuit is based on a complaint filed which states that between July 29, 2022, and June 12, 2025, the defendants reportedly failed to inform investors about several critical facts:
1. Inflated Asset Values: The fund is accused of marking tens of millions of dollars' worth of its portfolio assets at inflated prices that did not accurately represent their fair market value.
2. Flawed Valuation Methodology: A defective pricing and valuation methodology is said to have systematically exaggerated the fund's net asset value (NAV) and asset valuations.
3. Investment in Illiquid Assets: The complaint alleges that the fund held more illiquid assets than what was disclosed in its marketing materials, raising concerns about its liquidity and risk profile.
4. Correlation and Diversification Issues: Investors were misled about the diversification of the fund's investments, which turned out to be more correlated and less diverse than originally presented.
5. Overstated Performance Metrics: Due to the aforementioned discrepancies, the fund's stated NAV, NAV per share, individual asset evaluations, and historical performance were grossly overstated.
6. Risk of Collapse: There is an assertion that the fund was exposed to significant undisclosed risks, including a potential sudden drop in share prices.
7. Misleading Positive Statements: The management's optimistic statements regarding the fund’s operations and prospects lacked a reasonable basis, potentially misleading investors.

Taking Action

For those who are eligible and have suffered losses in the Easterly ROCMuni Fund, it is essential to act swiftly. Investors wishing to become lead plaintiffs in this case should reach out to the Law Offices of Howard G. Smith before the lead plaintiff deadline, which is set for September 22, 2025. Interested parties can contact the firm via email at [email protected], by telephone at (215) 638-4847, or visit their website at www.howardsmithlaw.com for more information.

It's noteworthy that joining this class action does not require immediate action. Investors can choose to simply be part of the class without hiring legal representation at this time, although it's advisable to understand one’s rights in these complex litigation situations.

Conclusion

The Easterly ROCMuni High Income Municipal Bond Fund has found itself under scrutiny due to the recent allegations. Investors who believe they have been wronged now have the opportunity to regain their footing through potential legal recourse. It serves as a reminder of the importance of transparency in investment practices and the rights of investors to seek accountability. If you are an affected investor, ensure you explore this opportunity to participate in the ongoing lawsuit.