Investors in Easterly ROCMuni High Income Fund Seek Justice for Alleged Securities Fraud

In a significant turn of events, investors who faced financial losses in the Easterly ROCMuni High Income Municipal Bond Fund—previously known as Principal Street High Income Municipal Fund—are being given a chance to take the lead in a securities fraud class action lawsuit. This lawsuit is spearheaded by Glancy Prongay & Murray LLP, a legal firm specializing in representation for investors who have been wronged in financial dealings.

Background of the Fund

The Easterly ROCMuni High Income Fund (NASDAQ: RMHIX, RMHVX, RMJAX) was designed to offer high yields by investing in municipal bonds. However, investors have recently expressed concerns regarding the management and transparency of the fund's operations. Between July 29, 2022, and June 12, 2025, significant allegations emerged regarding the valuation practices of the fund, leading to the current legal action.

Key Allegations

The lawsuit alleges that the fund's management failed to disclose critical information that materially affected the fund's valuation and the investors' financial decisions. According to the complaint, several key points were misrepresented or omitted entirely:

1. Inflated Asset Values: The fund allegedly marked tens of millions of dollars' worth of portfolio assets at inflated prices that did not accurately reflect their fair market value.

2. Flawed Valuation Methodology: The complaint contends that the fund implemented a fundamentally flawed pricing methodology, which systematically inflated both the net asset value (NAV) of the fund and the valuations of individual assets within the portfolio.

3. Overexposure to Illiquid Assets: The fund was reportedly invested in a significantly larger proportion of illiquid assets than was disclosed in any offering materials provided to potential investors.

4. Low Diversification: The assets held by the fund were found to have a greater correlation and less diversification than what was presented to investors.

5. Misleading Statements: Due to the aforementioned issues, the fund's stated NAV, share prices, and historical performance metrics were substantially overstated. Thus, the optimistic statements made by the management regarding the fund’s prospects lacked any reasonable basis.

What This Means for Investors

Investors who suffered losses and wish to have a stake in this class action must act quickly. The deadline to become the lead plaintiff in this case is September 22, 2025. Individuals who believe they qualify based on their investment losses related to the fund should reach out to Glancy Prongay & Murray LLP for more information. The firm encourages potential claimants to evaluate their situation and consider participating in the lawsuit against the fund's management.

Next Steps for Affected Investors

For those interested in pursuing their claims, Glancy Prongay & Murray LLP offers guidance on how to proceed. Investors are urged to provide their contact details and total shares purchased for assistance in the claims process. They can participate as class members without needing to take immediate action, although engaging legal counsel is advised.

Investors may inquire about their rights and interests by directly contacting Charles Linehan, Esq., at Glancy Prongay & Murray LLP in Los Angeles. This legal action represents an essential opportunity for investors to seek accountability and recover losses associated with their investments in the Easterly Fund.

As the deadline for participation approaches, affected investors are reminded of the importance of timely action to ensure their representation in this critical lawsuit against alleged securities fraud.