Investors Seize Opportunity in Easterly ROCMuni Class Action Lawsuit
Investors Seize Opportunity in Easterly ROCMuni Class Action Lawsuit
The recent announcement by Robbins Geller Rudman & Dowd LLP has sent ripples through the investment community concerning the Easterly ROCMuni High Income Municipal Bond Fund, a financial entity previously known as Principal Street High Income Municipal Fund. The law firm is inviting investors who incurred significant losses from their shares in this mutual fund—specifically purchased between May 5, 2023, and June 12, 2025—to consider stepping up as lead plaintiffs in a related class action lawsuit.
Overview of the Class Action
The class action, which goes by the title Victorson v. James Alpha Funds Trust d/b/a Easterly Funds Trust, No. 25-cv-06028 (S.D.N.Y.), targets the Easterly ROCMuni Fund along with several parties involved in its management and operation. These include the fund's investment adviser, Easterly Investment Partners LLC, and its former adviser, Principal Street Partners, LLC. Additionally, several underwriters and key executive officers are included in the suit for their alleged role in breaching the Securities Exchange Act of 1933.
Investors with substantial losses have until September 22, 2025, to file their appointment requests as lead plaintiffs. According to the Private Securities Litigation Reform Act, this enables the most affected investors to take charge of the lawsuit, ensuring that the interests of the broader class of affected investors are adequately represented.
Allegations Against the Fund
Since its inception in September 2017, the Easterly ROCMuni Fund has been perceived as a conservative option for investors seeking yield-driven returns through high-yield municipal bonds. However, as the allegations in the lawsuit unfold, it seems that the fund may have been employing misleading practices.
The class action firmly alleges that the fund's management was guilty of several misrepresentations, including the valuation of its portfolio assets. Specifically, the lawsuit claims:
- - The fund inflated the valuations of its assets, marking them at levels that did not accurately reflect their true worth.
- - A flawed pricing methodology systematically inflated the fund's net asset value (NAV), misleading investors about its financial health.
- - There was a higher investment in illiquid assets than what was disclosed to investors, increasing risk without an adequate assessment.
- - The underlying investments exhibited less diversity and a more significant correlation than the fund claimed, leading to unrealistically high NAV figures and potential risks being undisclosed.
On June 13, 2025, the fund experienced a shocking drop in asset valuations, marking shares down by upwards of 30% overnight. The NAV per share for RMHIX reportedly fell from $6.15 to $4.33, while other shares witnessed similar plummets. Following this drastic shift, values continued to decline, leading to an alarming loss of total net assets, which fell from over $230 million to below $17 million in a matter of months.
The Lead Plaintiff Process Explained
For investors interested in participating in the lawsuit, it is essential to understand the process of becoming a lead plaintiff. Essentially, a lead plaintiff typically has the strongest interest in the outcome of the case while also being representative of the class. This individual will collaborate with legal counsel to guide the lawsuit effectively and can choose their legal representation.
The chance of recovery in a class action lawsuit doesn't rely solely on the lead plaintiff designation. Any investor from the affected class could benefit from potential recoveries—underscoring the collective pursuit of justice against perceived market injustices.
Robbins Geller: A Leading Advocate for Investors
Robbins Geller Rudman & Dowd LLP stands out as one of the foremost law firms specializing in investor protection against securities fraud. With a track record that includes recovering over $2.5 billion for investors in class action lawsuits in 2024 alone, the firm has proven its ability to drive significant returns when representing impacted parties.
The firm's extensive experience positions it well to spearhead the Easterly ROCMuni class action, highlighting the importance of legal advocacy in times of financial distress for investors.
For more information about the lawsuit or how to participate, interested parties may contact Robbins Geller or visit their official webpage, where they can find specific guidance tailored to investors affected by the Easterly ROCMuni Fund circumstances.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.