SOURCE: Gilman and Pastor LLP

September 23, 2009 10:30 ET

Gilman and Pastor LLP Files Class Action Lawsuit on Behalf of Purchasers of Multiple ProShares Ultra and UltraShort Funds

BOSTON, MA--(Marketwire - September 23, 2009) - Gilman and Pastor LLP filed a class action lawsuit on September 21, 2009 in the United States District Court for the District of Maryland, on behalf of Plaintiffs and all persons who purchased or otherwise acquired shares in the following ProShares Funds:

UltraShort Real Estate Fund (AMEX: SRS)

UltraShort Financials (AMEX: SKF)

UltraShort Oil and Gas (AMEX: DUG)

Ultra Financials (AMEX: UYG)

UltraShort S&P 500 (AMEX: SDS)

UltraShort Emerging Markets (AMEX: EEV)

UltraShort FTSE/Xinhua (AMEX: FXP)

UltraShort DJ - AIG - Crude Oil (AMEX: SCO)

(collectively hereinafter referred to as the "ProShares Funds")

The ProShares Funds are exchange-traded funds ("ETF") offered by ProShares Trust ("ProShares") and Plaintiffs and class members were damaged pursuant or traceable to ProShares' false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the "Registration Statement"). The Plaintiffs seek a Class and Subclasses for each of the Funds purchased by the Plaintiff. The Class is seeking recovery for investors under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act").

If you bought shares in any of the ProShares Funds and would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact Kenneth G. Gilman, Esq. of Gilman and Pastor, at (888) 252-0048, or via email at Lead Plaintiff motion papers must be filed with the U.S. District Court for the District of Maryland by the following deadlines:

October 5, 2009 ProShares SRS and SKF Funds

November 4, 2009 ProShares EEV Fund

November 24, 2009 ProShares DUG, UYG, SDS, FXP, SCO Funds

A Lead Plaintiff is a court-appointed representative for absent class members. You do not need to seek appointment as Lead Plaintiff to share in any class recovery in this action. If you are a class member and there is a recovery for the class, you can share in that recovery as an absent class member. You may retain counsel of your choice to represent you in this action.

If you are a member of this class you can view a copy of the complaint and join this class action online at

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 sold its SRS, SKF, DUG, UYG, SDS, EEV, FXP, and SCO Funds as "simple" directional plays. The Funds correspond to twice the inverse (-200%) daily performance or twice the performance of a designated benchmark Index.

The complaint alleges the Defendants violated the Securities Act by failing to disclose that the Funds are altogether defective as a securities product and as directional investment play. Defendants failed to disclose the following risks in the Registration Statement: (1) accurate correlation between the ProShares Funds and the applicable benchmark Index could not happen and would inevitably diverge from the performance of the applicable Index -- i.e., the probability, if not certainty, of spectacular tracking error; (2) the adverse mathematical compounding and high market volatility on the Funds' investment objective and performance; (3) the ProShares Funds cause dislocations in the stock market; and (4) the ProShares Funds were marketed as a seemingly straightforward way to obtain desired results, but such results were not attainable through the ProShares Funds.

Plaintiffs are represented by the law firm Gilman and Pastor LLP. Gilman and Pastor LLP is one of the country's premier national law firms that represent institutional and individual investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 30 years and has been recognized for its reputation for excellence by the courts.

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