Judicial Approval Sought for $20 Million AlphaCentric Fund Class Action Settlement

Proposed Settlement of Class Action on AlphaCentric Income Opportunities Fund

Scott+Scott Attorneys at Law LLP has announced a significant legal development concerning the AlphaCentric Income Opportunities Fund. The Supreme Court of New York is set to hear motions regarding a proposed settlement of a class action lawsuit on June 4, 2026. This case impacts all individuals and entities who purchased shares in the fund from July 27, 2018, to March 22, 2020.

The action was initiated by Susan Koza, representing affected shareholders, against several defendants, including AlphaCentric Advisors LLC and Northern Lights Distributors, LLC. The essence of the lawsuit revolves around allegations that the registration statements and other disclosures made by the AlphaCentric Income Opportunities Fund during the given period contained misleading statements and omitted key facts regarding the fund’s liquidity. These omissions are said to have misled investors about the financial health and operational capacity of the fund.

Settlement Details

The proposed settlement amount stands at $20 million in cash. This fund aims to compensate individuals who acquired Class A, Class C, or Class I shares during the referenced timeframe. Shareholders are advised to closely follow the litigation process, as their rights may be affected. The court will evaluate whether this settlement is fair and reasonable at the upcoming hearing.

Under the terms of the proposed settlement, shareholders who wish to benefit from the settlement must submit a Proof of Claim and Release form by May 26, 2026. Failing to do so will result in the forfeiture of any claim to the settlement funds. Additionally, anyone who does not opt out of the settlement class will be bound by the terms of the settlement, even if they do not submit a timely claim.

Implications for Investors

The implications of this settlement are profound for investors who were potentially misled by the fund’s disclosures. By participating in the settlement, claimants may receive compensation for their losses stemming from the alleged misrepresentations. However, those choosing to object to the settlement or seek exclusion must adhere to the specific procedures detailed in the court’s notice, with a deadline set for April 27, 2026.

Critically, all inquiries regarding this settlement should not be directed to the defendants or the court directly, but rather to the class counsel, Scott+Scott Attorneys at Law LLP. They have provided contact details, emphasizing that the court has authorized the notice but is not soliciting claims or participation through any attorney representation.

Conclusion

As the June hearing approaches, affected shareholders are encouraged to stay informed and take necessary actions to secure their interests. The outcome of this settlement could provide financial restitution to many who relied upon the fund’s disclosures during a tumultuous investment period.

For further details and to obtain necessary documentation, investors can visit AlphaCentric Securities Litigation or contact the claims administrator or class counsel as indicated in the official notification.