SOURCE: Bernstein Liebhard LLP

December 08, 2009 11:11 ET

ProShares Ultra QQQ Fund (QLD) Class Action Filed by Bernstein Liebhard LLP

NEW YORK, NY--(Marketwire - December 8, 2009) - Bernstein Liebhard LLP filed a class action lawsuit on December 7, 2009 in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired shares in the ProShares Ultra QQQ fund (the "QLD Fund") (NYSE: QLD), 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 (collectively, the "Registration Statement") issued in connection with shares of the QLD Fund (the "Class"). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").

The complaint names ProShares, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, "Defendants"). ProShares sells its Ultra and UltraShort ETFs as "simple" directional plays. As marketed by ProShares, Ultra ETFs are designed to go up when markets go up; UltraShort ETFs are designed to go up when markets go down. The QLD Fund is one of ProShares' Ultra ETFs. The QLD Fund seeks investment results that correspond to twice (+200%) the daily performance of the NASDAQ 100. Accordingly, the QLD Fund is supposed to deliver double the return of the NASDAQ 100, which rose approximately 33 percent in 2009, through July 30th. Rather than increase approximately 66 percent (double), the QLD Fund has fallen approximately 35 percent in that time.

The complaint alleges the Defendants violated the Securities Act by failing to disclose the following risks, inter alia, in the Registration Statement: (1) if QLD Fund shares were held for a time period longer than one day, the likelihood of catastrophic losses was huge; and (2) the extent to which performance of the QLD Fund would inevitably diverge from the performance of the NASDAQ 100 -- i.e., the overwhelming probability, if not certainty, of spectacular divergence.

Plaintiff in the QLD Action seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of the QLD Fund. If you purchased or otherwise acquired shares of the QLD Fund, and either lost money on the transaction or still hold the shares, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than February 8, 2010.

A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

There are also the following pending lead plaintiff deadlines in other ProShares funds:

December 28, 2009 for ProShares UltraShort DJ-UBS Crude Oil (the SCO Fund)

January 4, 2010 for ProShares' Ultra Oil & Gas Fund (the DIG Fund)

February 1, 2010 for ProShares UltraShort Basic Materials Fund (the SMN Fund)

If you purchased or otherwise acquired shares in the QLD, SCO, DIG, or SMN Funds, or any ProShares leveraged funds, and either lost money on the transaction or still hold the shares, please contact Joseph R. Seidman, Jr. at (877) 779-1414.

Bernstein Liebhard has pursued hundreds of securities and consumer cases and recovered approximately $2 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last six years.

Bernstein Liebhard has also filed cases concerning ProShares' SRS, SKF, DUG, UYG, DXD, and SMN funds. You can view a copy of these complaints, as well as the QLD complaint, online at, or obtain them from the court.

Bernstein Liebhard LLP
10 East 40th Street
New York, New York 10016
(877) 779-1414

ATTORNEY ADVERTISING. © 2009 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.

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