SOURCE: Tramont Guerra & Nunez, PA

September 04, 2009 18:00 ET

Notice to All Proshare Advisors UltraShort Financials Fund Investors From the Securities Law Firm of Tramont Guerra & Nunez, PA

CORAL GABLES, FL--(Marketwire - September 4, 2009) - The Securities Law Firm of Tramont Guerra & Núñez, PA (TGN) makes an announcement to all investors in the Proshare Advisors UltraShort Financials Fund ETF (NYSE: SFK) concerning the class action lawsuit (Case No. 09-CV-07356) filed on August 20, 2009, in the United States District Court, Southern District of New York. The class action lawsuit was filed on behalf of investors in the Proshare UltraShort Financials Fund who suffered investment losses. The lawsuit alleges that Proshare Advisors, LLC failed to properly structure the Exchange Traded Fund (ETF) to perform in a manner which was consistent with representations made in the prospectus. In this instance, the Proshare UltraShort Financials ETF price failed to move with a 200% inverse correlation relative to the underlying tracking index, the Dow Jones U.S. Financials Index (DJI: DJFIX), which resulted in the losses sustained by investors. In fact, the lawsuit asserts that from January 2, 2008 through December 17, 2008, the tracking index declined 51.03% while the Proshare UltraShort Financials Fund ETF appreciated only 1.06%, instead of a 102.06% gain which was projected by Proshares Advisors, LLC. Prospective class members should consider whether an individual securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA) is more effective than a class action for recovery of their investment losses.

Regulators recently warned about the unsuitable nature of leveraged and inversely correlated ETFs for retail investors. Contrary to these pronouncements, many investors were advised by their financial advisors that leveraged and inversely correlated ETFs were suitable for retail investors. Brokerage firms are obligated to give, and investors are entitled to rely upon, brokerage firms for competent, suitable investment advice in accordance with the FINRA Sales Practice Rules and Regulations. Recommendations of unsuitable investments are causes of action that form the basis for individual securities arbitration claims filed with FINRA.

The Securities Law Firm of Tramont Guerra & Núñez, PA is a nationally recognized, Martindale Hubbell "AV" rated securities law firm. To request a confidential consultation from a TGN attorney to determine whether you have a viable individual securities arbitration claim for investment losses that exceed $100,000 from a full service brokerage account, contact us on our website. To speak directly with an attorney, call (800) 578-0137 and ask for Ben Fernandez, Esquire.

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Contact Information

  • Contact:
    David Chacin, Esquire
    2100 Ponce De Leon Blvd, Penthouse II
    Coral Gables, Florida 33431
    (800) 578-0137
    Email Contact