Robbins Geller Files Class Action Against Easterly ROCMuni Bond Fund: A Call for Investors to Take Action

Robbins Geller Takes Action Against Easterly ROCMuni Fund

In a significant legal move, Robbins Geller Rudman & Dowd LLP has announced a class action lawsuit against the Easterly ROCMuni High Income Municipal Bond Fund, previously known as Principal Street High Income Municipal Fund. This lawsuit is crucial for all investors who purchased shares in the fund during the specified class period, from May 5, 2023, to June 12, 2025. The firm is providing an opportunity for these investors, who may have suffered severe financial losses, to become the lead plaintiff in the case.

The lawsuit, officially filed under the caption Victorson v. James Alpha Funds Trust d/b/a Easterly Funds Trust, No. 25-cv-06028 (S.D.N.Y.), alleges various breaches of the Securities Exchange Act of 1933. The case centers around accusations that the Easterly ROCMuni Fund, along with associated entities—including James Alpha Funds Trust and Easterly Investment Partners LLC—provided false and misleading information regarding the fund's operations and valuation methods.

Key Allegations of the Class Action

The complaint outlines several critical accusations against the Easterly ROCMuni Fund:
1. Artificial Valuation: It is claimed that the fund marked tens of millions of dollars' worth of its portfolio assets at inflated values, failing to accurately reflect their fair market value.
2. Flawed Pricing Methodology: The lawsuit alleges that the fund's pricing and valuation methods were fundamentally flawed, systematically inflating the net asset value (NAV) of the fund.
3. Illiquid Assets: The fund is accused of holding a higher concentration of illiquid assets than disclosed in its offering materials, misleading investors about the risks associated with their investments.
4. Lack of Diversification: Contrary to representations made in the offering documents, it is claimed that the fund's assets had less diversification and higher correlation, which increased its risk profile.
5. Collapse in Share Prices: On June 13, 2025, the Easterly ROCMuni Fund shockingly marked down its share values by 30%, causing massive losses as subsequent days saw the NAV plunge dramatically.

The Impact of the Fund’s Collapse

Investors who had their assets in the Easterly ROCMuni Fund have witnessed a dramatic fall in the value of their investments. The per-share NAV saw a staggering drop: from $6.15 to $4.33 for RMHIX, $6.19 to $4.36 for RMHVX, and $6.13 to $4.31 for RMJAX within just one day. This downfall continued as the share values plummeted to less than $3 in just two weeks, alongside the total net assets of the fund collapsing from over $230 million to under $17 million by July 8, 2025.

The Lead Plaintiff Process

Investors who acquired shares in the Easterly ROCMuni Fund during the class period have a unique opportunity to seek appointment as the lead plaintiff. According to the Private Securities Litigation Reform Act of 1995, a lead plaintiff is generally someone with the greatest financial interest in the case and is representative of the other class members. This plaintiff will play a significant role in directing the class action and can select the law firm to represent them.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is recognized as a leading law firm in the securities fraud and shareholder litigation arena. With a proven track record, the firm has secured substantial monetary relief for investors, ranking #1 in the ISS Securities Class Action Services rankings for four out of the past five years. Their expertise makes them well-suited to handle complex financial fraud cases, and they invite affected investors to step forward and join the fight for justice.

For those interested in joining the lawsuit or seeking more information, Robbins Geller has made contact options available, including an online form for potential lead plaintiffs to submit their details.

If you believe you have been affected by the issues surrounding the Easterly ROCMuni Fund and wish to learn more about your rights and options, please do not hesitate to reach out to Robbins Geller representatives by contacting J.C. Sanchez or Jennifer N. Caringal at 800-449-4900 or through [email protected].

This ongoing legal battle unfolds as a crucial moment for investors, providing them the potential to reclaim their losses and hold accountable those responsible for the alleged misconduct surrounding the Easterly ROCMuni Fund.