Easterly ROCMuni Fund Investors Offered Chance to Lead Fraud Lawsuit

Legal Action for Easterly ROCMuni Fund Investors

The Law Offices of Howard G. Smith have announced a pivotal opportunity for investors who have incurred significant losses in the Easterly ROCMuni High Income Municipal Bond Fund, previously known as the Principal Street High Income Municipal Fund. This announcement, made on August 4, 2025, opens the door for these investors to take a leading role in a class action lawsuit targeting alleged securities fraud associated with the fund.

Background on the Fund

The Easterly ROCMuni High Income Municipal Bond Fund, trading under the NASDAQ symbols RMHIX, RMHVX, and RMJAX, is designed for investors seeking income through municipal bonds. However, allegations have surfaced regarding the fund’s mismanagement and misleading communications about its asset valuation and investment strategies. Investors are urged to come forward before the lead plaintiff deadline of September 22, 2025, to participate actively in this legal pursuit.

Allegations of Mismanagement

The class action lawsuit revolves around several critical claims made against the fund and its management. The core allegations state that from July 29, 2022, to June 12, 2025, the fund failed to provide transparent and accurate information to its investors. Specifically, the fund is accused of:
1. Inflating the valuation of its portfolio assets by tens of millions of dollars, which misrepresented their fair market value.
2. Implementing a flawed pricing methodology that resulted in the systematic inflation of the fund’s net asset value (NAV).
3. Holding a larger percentage of illiquid assets than was disclosed in the fund's offering materials, raising concerns about the fund's overall liquidity.
4. Presenting a misleading notion of diversification, as the actual asset correlations were higher and less diversified than the fund claimed.
5. Significantly overstating the fund's historical performance and valuation metrics, leading to a false sense of security among investors.
6. Failing to disclose the material risks that could lead to a sudden drop in share prices due to the inflated valuations.

These allegations point towards a broader issue of transparency and ethical practices within the fund’s management. Investors who had placed their trust in the fund based on misleading information may have significant claims for restitution and damages.

How to Get Involved

Investors affected by these issues are encouraged to reach out to the Law Offices of Howard G. Smith to discuss their legal rights and explore their options. They can contact the firm through various means, including phone (215-638-4847), email, or by visiting their official website, www.howardsmithlaw.com. Potential participants do not need to take immediate action but may choose to consult their counsel for guidance on joining the class action.

Conclusion

The Easterly ROCMuni Fund's situation serves as a crucial reminder of the importance of due diligence and transparency within investment funds. With the opportunity to lead a securities fraud class action, affected investors are now at a crossroads, facing the possibility of reclaiming their losses. As the legal proceedings unfold, many investors will be watching closely, hoping for accountability and recovery of their investments.