Legal Developments Surrounding Easterly ROCMuni Fund Highlight Investment Risks for Shareholders

Recent Legal Actions Against Easterly ROCMuni Fund

Investors in the Easterly ROCMuni High Income Municipal Bond Fund, previously known as the Principal Street High Income Municipal Fund, are now facing significant legal challenges. A class action lawsuit has been filed by Pomerantz LLP, a firm renowned for its corporate and securities litigation, on behalf of both current and former shareholders of the Fund. This legal action underscores a critical concern regarding the management practices of the Fund, including allegations of potential violations of federal securities laws.

The lawsuit suggests that certain investment practices and disclosures related to the Fund were not only misleading but possibly deceptive. The documents that accompanied the fund's continuous offering of shares, referred to as Offering Materials, allegedly contained numerous inaccuracies. The firm claims that there were misstatements regarding the fair value of the Fund's portfolio assets, positioning the assets at inflated prices that did not reflect their actual market value. This misrepresentation ultimately affects the net asset value (NAV) of the fund, leading to implications for investors.

Investors are advised to reach out to Pomerantz LLP for further information and assistance. The legal team emphasizes the importance of addressing these discrepancies head-on, noting that investors who purchased shares during the designated Class Period must act quickly. The deadline to express interest in being appointed as lead plaintiff in this case is September 22, 2025, making it imperative for investors to stay informed.

The alleged mismanagement has significant implications. Reports indicate that the investment strategies utilized by the Fund involved a high concentration in illiquid assets, contrary to what was portrayed in official communications. This lack of diversification raises a red flag regarding the Fund’s stability and security, leaving investors vulnerable to potential losses. Furthermore, the coupling of inflated asset valuation with misleading statements concerning the distribution and correlation of those assets fulfills serious concerns over responsible investment practices.

Pomerantz LLP, with its extensive history in class actions dating back over 85 years, remains committed to protecting the rights of individuals affected by corporate misconduct and securities fraud. Founded by Abraham L. Pomerantz, a pioneering figure in class action law, the firm has achieved numerous multimillion-dollar settlements on behalf of its clients. This latest lawsuit marks another chapter in its ongoing effort to hold financial entities accountable for their actions.

Individuals invested in the Easterly ROCMuni High Income Municipal Bond Fund during the relevant period should take these developments seriously and consider seeking legal counsel to understand their rights and potential recourse. The allegations bring to light the vital role of compliance and transparency in investment management, echoing the broader financial industry's responsibility to its clientele.

In a landscape where investment risks are often underrepresented, such legal suits remind shareholders of the essential need for due diligence and vigilance when it comes to their investment choices. As the case unfolds, it will be interesting to observe the repercussions this might have not only on the Easterly ROCMuni Fund but across similar investment platforms that may be under scrutiny for their practices.