Faruqi & Faruqi Investigates Investors' Claims Against The Wildermuth Fund

Investigation Into The Wildermuth Fund

Faruqi & Faruqi, LLP, a prominent national securities law firm, recently announced an investigation concerning potential claims on behalf of investors in the Wildermuth Fund. This comes as the firm seeks to assist individuals who have experienced financial losses due to the alleged mismanagement and misleading statements related to the fund.

Investors who purchased or acquired securities in the Wildermuth Fund between November 1, 2020, and June 29, 2023, have been encouraged to contact the firm's partner, James (Josh) Wilson, to discuss their legal rights and options. The deadline for filing as a lead plaintiff in a federal securities class action against the Wildermuth Fund is swiftly approaching, specifically set for December 29, 2025. This pressing timeline is critical for affected investors who wish to play a principal role in the upcoming litigation.

Background of the Inquiry

According to reports, the Wildermuth Fund's executives are accused of violating federal securities laws. The allegations suggest that they provided false and misleading information while also failing to disclose vital details about the fair value of the fund’s investments. This includes assertions that certain portfolio companies were propped up by an ongoing infusion of cash from the fund, despite their questionable viability. Moreover, the firm allegedly inflated the fund's net asset value, resulting in unwarranted advisory fees to their investment advisor. Such actions have reportedly caused significant damage to the class members involved.

The turmoil for the Wildermuth Fund escalated on June 29, 2023, when the fund’s Board of Trustees approved a liquidation plan based on recommendations from the advisor. Initial reassurances from the advisor claimed there were no underlying issues with the fund’s investments, and trading continued around a net asset value of $10 per share. However, this façade crumbled when the fund ultimately lost certain tax advantages, leading to the decision to liquidate.

Fast forward to November 1, 2023, when significant changes occurred in the fund's management. Notably, Daniel and Carol Wildermuth resigned from their executive positions as officers and board members. This shakeup further included the replacement of their advisory services with BW Asset Management Ltd., a subsidiary of Kroll.

Dramatic Losses Reported

Comparative analysis between reported values in March 2022 and October 2024 indicates that the value of the fund’s investments plummeted by an alarming 63.6%, while the net asset value saw a decline of 73.7%. Even more devastating was the comparison to March 2023 values, illustrating a 47.4% drop in investment value and a 57.7% decline in net asset value by October 2024. By 2024, Kroll had re-evaluated the net asset value to less than $2.00 per share, marking an astonishing 80% reduction from its previous share value.

The class action lawsuit intends to hold accountable those responsible for these financial discrepancies and seeks justice for the investors who have suffered. The role of a lead plaintiff is essential to guide and oversee the litigation on behalf of all affected class members. Investors can either volunteer for this role or choose to remain as passive class members.

How Investors Can Proceed

Faruqi & Faruqi strongly advocates for individuals with insights or information related to the Wildermuth Fund’s practices to reach out, including whistleblowers, former employees, and long-term shareholders. This collective effort is crucial to building a robust case against the alleged misconduct.

Time is of the essence, and those who have suffered financial setbacks linked to the Wildermuth Fund should not delay. To learn more about filing claims or joining the class action, affected investors are encouraged to visit the firm’s website or call directly to speak with Josh Wilson. The firm has established a reputable track record, recovering significant amounts for investors across a multitude of cases since its inception in 1995.

In conclusion, the investigation by Faruqi & Faruqi reflects an unwavering commitment to safeguarding investors’ rights and ensuring they explore every avenue for recovery as the December 2025 deadline approaches.

Learn More About This Case

Faruqi & Faruqi, LLP will continue to monitor developments closely and is committed to keeping the public informed about any further updates regarding the Wildermuth Fund litigation.