NEW YORK, Nov. 3, 2009 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP has filed a class action (09-cv-9077) on behalf of investors of ProShares' UltraShort S&P Fund (NYSE:SDS) who purchased or otherwise acquired shares in the SDS Fund, an exchange-traded fund ("ETF") offered by ProShares Trust ("ProShares"), pursuant or traceable to ProShares' false and misleading Registration Statement, Prospectuses, and Statements of Additional Information issued in connection with the SDS Fund's shares.
The SDS Fund is an inverse leveraged ETF that seeks investment returns that are two times the inverse performance of the S&P 500 Index. The case centers on the allegation that the registration statement filed by ProShares failed to adequately disclose that SDS shares should not be held more than a single trading day and were not an appropriate hedge against a decline in U.S. based stocks.
Specifically, the complaint alleges, among other things, that The Registration Statement misled investors that the SDS Fund would deliver double the inverse return of the S&P 500 Indes ("SPX"). ProShares' Registration Statement provides hypothetical examples of fees that investors may encounter over I-year, 3-year, 5-year, and 10-year periods, thereby misleading investors that the SDS Fund may be used for intermediate or long-term investing. The Registration Statement did not explain that, notwithstanding the name of the SDS Fund, the investment objective of the SDS Fund, and the purpose of ProShares' UltraShort ETFs, the SDS Fund would - to a mathematical certainty -- cause enormous losses if used for intennediate or long-term investing. The enormous losses are accelerated when the market becomes more volatile.
If you are a shareholder who purchased shares in the SDS Fund during the relevant period, you have until January 4, 2009 to ask the Court to appoint you as lead plaintiff for the class. Shareholders outside the United States may join the action, regardless of where they live or which exchange was used to purchase the securities.
Pomerantz is also investigating other ETF funds including ProShares' UltraShort Dow 30 Fund (NYSE:DXD), ProShares' UltraShort MSCI Emerging Markets Fund (NYSE:EEV), ProShares' UltraShort FTSE/Xinhus Fund (NYSE:FXP), and ProShares UltraShort DJ-AIG-Crude Oil Fund (NYSE:SCO).
Those who invested are advised to contact Teresa Webb at 888-476-6529 or 212-661-1100 or tlwebb@pomlaw.com. Pomerantz has prosecuted securities fraud claims for 70 years, and is regarded as one of the country's premier class action firms. The firm has offices in New York City, Chicago, Washington, D.C., Burlingame, CA. and Columbus, Ohio.