LOS ANGELES–(BUSINESS WIRE) – Frank R. Cruz's law firm announces that a class action lawsuit has been filed on behalf of individuals and entities that have purchased or otherwise purchased ProShares Ultra Bloomberg Crude Oil ("UCO" or "Fund") (NYSEArca: UCO)) Securities included between March 6, 2020 and April 27, 2020 (the "Class Period"). UCO investors have until September 28, 2020 to submit an application from the main plaintiff.
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The complaint alleges that the defendants made and / or did not disclose false and / or misleading statements throughout the class period: (1) that exceptional market volatility was caused by lower oil demand due to the coronavirus pandemic and increased oil supply, as well as decreased oil prices was caused by the Russia / Saudi oil price war; (2) that a massive inflow of hundreds of millions of dollars of investor capital into the fund within a few days increased the inefficiency of the fund, increased illiquidity in the WTI futures markets in which the fund invested, and created the fund Approach position and regulatory boundaries (adverse trends that are exacerbated by the offer itself); and (3) that a strong divergence between spot and future prices on the WTI oil markets led to super contango market momentum as the oil storage in Cushing, Oklahoma, shrank and was insufficient to adequately accommodate the expected oversupply the WTI futures contract from May 2020; (4) As a result, UCO was unable to pursue the passive investment strategy outlined in the registration statement, which resulted in the results differing significantly from the alleged benchmark.
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If you purchased UCO securities during the class period, you can ask the court to appoint the primary plaintiff no later than September 28, 2020. You do not need to take any action at this time to be a member of the class. You can keep a lawyer of your choice or take no action and remain an absent member of the class. If you have purchased UCO Securities, have information or would like to learn more about these claims, or have questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of Frank R.'s law firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, email firstname.lastname@example.org or visit our website at www.frankcruzlaw.com. If you inquire by email, please provide your mailing address, telephone number and number of shares purchased.
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