NEW YORK, Oct. 23, 2009 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP (www.pomerantzlaw.com) ("Pomerantz") reminds investors in Direxion Shares ETF Trust ("Direxion" or the "Trust") (NYSEArca: FAZ), that November 17, 2009 is the deadline to request that the Court appoint you as Lead Plaintiff in the class action. Pomerantz filed a class action lawsuit in the United States District Court, Southern District of New York, against Direxion and certain of its top officials. The class action (09-CV-8375) was filed on behalf of persons or entities that purchased or otherwise acquired shares in the Financial Bear 3X Shares Fund (the "FAZ Fund") pursuant or traceable to the Registrations Statement, Prospectus and Statement of Additional Information issued in connection with the FAZ Fund's shares during the period of November 3, 2008 through April 9, 2009 inclusive, (the "Class Period"). The Complaint alleges violations of Sections 11 and 15 of the Securities Exchange Act, 15 U.S. C. Sections 77k and 77o.
Direxion is a Delaware statutory trust and a registered investment company offering a number of separate exchange-traded funds to the public. The Complaint alleges that the defendants violated the Securities Act by failing to disclose that the FAZ Fund is altogether defective as a directional investment play. Specifically, Defendants failed to disclose the following risks in Direxion Shares' Registration Statement: (1) inverse correlation between the FAZ Fund and the RFSI over time would only happen in the rarest of circumstances, and inadvertently, if at all; (2) the extent to which performance of the FAZ Fund would inevitably diverge from the performance of the RFSI - i.e., the probability, if not certainty, of spectacular tracking error; (3) the severe consequences of high market volatility on the FAZ Fund's investment objectives and performance; (4) the severe consequences of inherent path dependency in periods of high market volatility on the FAZ Fund's performance; (5) the role the FAZ Fund plays in increasing market volatility, particularly in the last hour of trading; (6) the consequences of the FAZ Fund's daily hedge adjustment always going in the same direction as the movement of the underlying index, notwithstanding that it is an inverse leveraged ETF; (7) the FAZ Fund causes dislocations in the stock market; and (8) the FAZ Fund offers a seemingly straightforward way to obtain desired exposure, but such exposure is not attainable through the FAZ Fund.
Shareholders outside the United States may join the action, regardless of where they live or which exchange was used to purchase the securities. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Teresa L. Webb at (tlwebb@pomlaw.com) or 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and Burlingame, California, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.