SAN DIEGO — A class action lawsuit has been filed involving the Easterly ROCMuni High Income Municipal Bond Fund, which was previously known as the Principal Street High Income Municipal Fund. Investors who purchased shares of this fund between May 5, 2023, and June 12, 2025, can apply to be lead plaintiffs in the case until September 22, 2025.
The suit, titled Victorson v. James Alpha Funds Trust d/b/a Easterly Funds Trust, alleges violations of the Securities Exchange Act of 1933 by the fund, as well as its investment adviser, Easterly Investment Partners LLC, and the former adviser, Principal Street Partners, LLC. The legal action also names various underwriters, executive officers, and trustees of the fund.
The Easterly ROCMuni Fund, which began operations in September 2017, aims to provide a long-term, yield-driven total return through a diversified portfolio of high-yield municipal bonds. However, the complaint asserts that the fund allegedly misrepresented the fair value of its assets and employed a faulty pricing methodology. This resulted in an inflated net asset value (NAV) and asset valuations, misleading investors about the true risk and financial health of the fund.
On June 13, 2025, the fund saw a significant drop, marking its shares down by 30%. For example, the NAV per share for RMHIX fell from $6.15 to $4.33, while similar declines occurred for other share classes. Just two weeks later, the share prices fell below $3 each, leading to a dramatic decline in total net assets from over $230 million to less than $17 million.
Robbins Geller Rudman & Dowd LLP, the law firm representing the plaintiffs, has a reputation for handling class action cases related to securities fraud. Investors affected by the fund’s decline are encouraged to share their information with the firm if they wish to pursue becoming lead plaintiffs.
Under the Private Securities Litigation Reform Act of 1995, investors who have experienced significant financial losses during the class period may seek to represent other affected shareholders. A designated lead plaintiff will guide the lawsuit and may select their own legal representation.
Robbins Geller boasts extensive experience in securities litigation, having secured multi-billion dollar settlements in previous actions. The firm has been recognized for its success in representing investors and has recovered significant damages in various cases.
This lawsuit serves as a reminder of the risks associated with investing in mutual funds and the importance of due diligence before making investment decisions. Affected investors may contact Robbins Geller for more information on how to participate in the class action.
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