U.S. District Court Dismisses Class Action Lawsuit against ProShares
Bethesda, MD, September 11, 2012—ProShares announced today that on September 10, 2012, the United States District Court for the Southern District of New York dismissed, in its entirety, the class action lawsuit filed against the Company in 2009. The court rejected the plaintiffs' claim that certain risks associated with holding leveraged and inverse ETFs for periods longer than one day were omitted from the disclosures set forth in the registration statements.
"We have maintained since the beginning of this case that the allegations were wholly without merit, and we are pleased that the claims have been dismissed in their entirety," said Amy Doberman, ProShares' General Counsel. "ProShares has demonstrated a long-standing commitment to educating investors about our products and their risks and benefits, so it is gratifying that Judge Koeltl's ruling rests on the strength and quality of our disclosures."
In his order dismissing the case, Judge John G. Koeltl ruled that the registration statements accompanying ProShares leveraged and inverse ETFs stated "in plain English" their daily performance objectives and clearly disclosed the possibility that "the ETFs' value could diverge significantly from the underlying index when the ETFs were held for longer than one day."
Judge Koeltl's ruling concluded that ProShares disclosures "addresse[d] the relevant risk directly" in a way that any "reasonably prudent investor would have understood."
Offering the nation's largest lineup of alternative ETFs, ProShares helps investors to go beyond the limitations of conventional investing and face today’s market challenges. Each ProShares ETF provides access to an alternative investment strategy delivered with the liquidity, transparency and cost effectiveness of an ETF. ProShares' lineup of 138 ETFs includes Global Fixed Income, Hedge Strategies, Geared (leveraged and inverse), and Inflation and Volatility ETFs.
Tucker Hewes, Hewes Communications, Inc., 212.207.9451, firstname.lastname@example.org
Sep 11, 2012