#United States #New York #Class Action #Faruqi & Faruqi #Wildermuth Fund

Faruqi & Faruqi Warns About Class Action Suit Against Wildermuth Fund

Faruqi & Faruqi, a prominent national securities law firm, is reaching out to investors who have suffered losses from the Wildermuth Fund. With a deadline for lead plaintiffs approaching on December 29, 2025, the firm is investigating claims against the company concerning potential violations of federal securities laws. Investors who acquired securities in the Wildermuth Fund between November 1, 2020, and June 29, 2023, are particularly encouraged to act.

What’s Happening?

The complaints against Wildermuth Fund allege that the company and its executives made misleading statements and failed to disclose critical information regarding their investment practices, which violated the Securities Exchange Act of 1934 and the Investment Company Act of 1940. Specifically, they are accused of:

1. Incorrectly assessing the fair value of the Fund’s investments.
2. Concealing that various portfolio companies were being artificially supported through significant cash infusions, raising severe concerns about their sustainability.
3. Deliberately inflating the net asset value (NAV) of the Fund, which led to exorbitant advisory fees paid to the advisors without the corresponding performance.

The Fund's struggles became more evident on June 29, 2023, when it announced a plan for liquidation, purportedly based on suggestions from their advisor. Initially, they reassured investors that their underlying investments were secure, with the Fund trading at an NAV of approximately $10 per share. However, by late 2024, reports indicated a shocking decline: a 73.7% drop in NAV compared to earlier valuations. Kroll, the new investment adviser, eventually adjusted the NAV to below $2 per share, marking an 80% reduction in value.

Who Can Be a Lead Plaintiff?

The court's lead plaintiff is generally an investor with the largest financial stake in the alleged damages, who is also a typical and adequate representative of the class members seeking redress. Any individual within the defined class can move to be a lead plaintiff or choose to remain an unnamed member without affecting their potential recovery from the case.

Faruqi & Faruqi encourages not just affected investors but also whistleblowers, former employees, and shareholders to come forward with any information regarding the Fund's practices. Individuals can get in touch with the firm through their dedicated helpline or website for further guidance and support.

Conclusion

This situation presents a significant opportunity for investors who may have lost substantial amounts due to potential misconduct by the Wildermuth Fund. Those interested should not delay in contacting legal counsel or Faruqi & Faruqi directly for a consultation. The deadline for taking action as a lead plaintiff is fast approaching, and timely intervention may be the key to recovering losses incurred due to the actions of Wildermuth Fund executives. Please visit www.faruqilaw.com/WESFX for more information.

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Contact Information

Faruqi & Faruqi, LLP
Phone: 877-247-4292 or 212-983-9330 (Ext. 1310)
Website: www.faruqilaw.com

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