#United States #Robbins Geller #San Diego #Securities Class Action #Easterly ROCMuni

Class Action Lawsuit Against Easterly ROCMuni Fund

The renowned law firm Robbins Geller Rudman & Dowd LLP has taken action against the Easterly ROCMuni High Income Municipal Bond Fund, previously known as the Principal Street High Income Municipal Fund, in response to significant financial losses suffered by investors. The lawsuit, which has garnered attention for its potential implications on investor rights, allows those who bought shares between May 5, 2023, and June 12, 2025, to step forward as lead plaintiffs in this case. The lead plaintiff process is a crucial component of class action lawsuits, allowing a representative to take charge of the case on behalf of all affected investors.

Allegations in the Lawsuit

The lawsuit, titled Victorson v. James Alpha Funds Trust d/b/a Easterly Funds Trust, is set against the backdrop of alleged violations of the Securities Exchange Act of 1933. According to the complaint, the defendants, which include Easterly Investment Partners LLC, the former investment adviser Principal Street Partners, and various executives and trustees, are accused of mismanagement and misrepresentation of the fund's assets.

A core allegation is that the Easterly ROCMuni Fund inflated its portfolio assets' values, leading to an inaccurate portrayal of its financial health. The plaintiffs assert that:
1. The Fund marked tens of millions of dollars’ worth of assets at inflated prices that didn't truly reflect their fair value.
2. A flawed pricing and valuation methodology was used, which systematically exaggerated the Fund's net asset value (NAV).
3. Illiquid assets comprised a larger portion of the Fund than what was disclosed in its offering materials.
4. The assets held by the Fund were not as diversified as suggested, further failing to protect investors from downturns.

The gravity of the situation became evident on June 13, 2025, when the Easterly ROCMuni Fund drastically marked down its shares by 30%. This sudden devaluation caused a significant drop in the net asset value per share, highlighting the alleged mismanagement and lack of transparency within the Fund's operations.

Investors' Rights and the Class Action Process

The Private Securities Litigation Reform Act of 1995 allows investors to seek the role of lead plaintiff if they purchased shares within the specified class period. The lead plaintiff is typically selected based on their financial stake in the matter and their capacity to adequately represent the class.

Investors are encouraged to contact Robbins Geller if they wish to seek more information or potentially join the lawsuit. Those interested can reach out to attorneys J.C. Sanchez or Jennifer N. Caringal at the firm’s San Diego office.

Robbins Geller has a solid track record in prosecuting class actions related to investor rights and securities fraud, showcasing its dedication to securing justice for those adversely affected financially.

About Robbins Geller Rudman & Dowd LLP

Robbins Geller is recognized as one of the leading law firms dedicated solely to representing investors in securities fraud cases. With a robust team of around 200 lawyers, the firm has achieved notable success in recovering billions for investors across numerous class action lawsuits. They have consistently ranked highly in terms of recovery amounts, emphasizing their commitment to holding corporations accountable for financial misdeeds.

For additional information regarding the class action lawsuit or to view the detailed allegations, potential plaintiffs are advised to visit Robbins Geller's official website.

Conclusion

As the legal landscape continues to evolve regarding investor protections, the actions taken by Robbins Geller against the Easterly ROCMuni Fund represent a significant push toward accountability. Investors affected by this situation have a responsibility to take steps to protect their financial interests and pursue any claims that may aid in recovering their losses.