ProShares Short VIX

Johnson Fistel Announces Class Action Suit against ProShares Short VIX Short-Term Futures ETF (SVXY); Encourages Investors to Contact the Firm for Additional Information

SAN DIEGO- PRNewswire —January 30, 2019

Johnson Fistel, LLP announces that a class action has been commenced on behalf of purchasers of ProShares Short VIX Short-Term Futures ETF (“SVXY” or the “Fund”) (NASDAQ: SVXY) pursuant to the May 15, 2017 Registration Statement and/or between May 15, 2017 and February 5, 2018 (the “Class Period”).

[Click here to join this action]

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased shares of SVXY pursuant to the Registration Statement and/or during the Class Period to seek appointment as lead plaintiff. A lead plaintiff acts on behalf of all other class members in directing the litigation. The lead plaintiff can select a law firm of its choice. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Jim Baker ([email protected]) at 619-814-4471. If emailing, please include a phone number. Additionally, you can [Click here to join this action]. There is no cost or obligation to you.

The complaint charges ProShares Trust II, ProShares Capital Management LLC, certain of their officers and/or directors and the underwriters of SVXY shares offered for sale during the Class Period with violations of the Securities Exchange Act of 1934 and the Securities Act of 1933. The CBOE Volatility Index, or “VIX,” seeks to measure the expected volatility of the S&P 500. The Fund is benchmarked to the S&P 500 VIX Short-Term Futures Index (the “Index”), an investable index of VIX futures contracts. The investment objective for the Fund during the Class Period was to achieve results for a single day that matched (before fees and expenses) the inverse (-1x) of the daily performance of the Index.

The complaint alleges that, in the Registration Statement and during the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding the risks of investing in the Fund. Specifically, the Registration Statement failed to disclose that the Fund was threatened with catastrophic losses as a result of the Fund’s flawed design and the low-volatility environment and acute liquidity risks that existed during the Class Period. In addition, during the Class Period defendants made substantially similar false and misleading statements as those contained in the Registration Statement in numerous financial reports and draft prospectuses and registration statements filed with the SEC.

On Monday, February 5, 2018, the stock market declined, with the S&P 500 Index (“SPX”) dropping 4% amid concerns about rising bond yields and higher inflation. The market turbulence triggered the flaw concealed in the SVXY, as the crowded market for VIX futures contracts spiraled out of control. The VIX rocketed upward to a high of 38.80 during the day, from a close of 17.31 on Friday, February 2, 2018 – a 124% daily spike. The Index experienced a similar surge, as the price of the VIX futures contracts on which it was based jumped at the end of the trading day. The price of SVXY shares, which track the inverse of the Index, declined. By the close of trading on February 5, 2018, the price of SVXY had dropped to $71.82 per share, from the prior close of $105.60 per share, a 32% decline. By market open on February 6, 2018, the price of SVXY shares had plummeted to a low of $11.11, a one-day decline of 90% from the prior day’s high of $107.19 per share.

Investors in SVXY pursuant to the May 15, 2017 Registration Statement and/or between May 15, 2017 and February 5, 2018 can [Click here to join this action].  There is no cost or obligation to you.

About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York, and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit https://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson Fistel, LLP
Jim Baker, 619-814-4471
[email protected]

  • Plaintiff certifies that:
    • 1. Plaintiff did not acquire the security that is the subject of this action at the direction of plaintiff's counsel or in order to participate in this private action or any other litigation under the federal or state securities laws.
    • 2. Plaintiff is willing to serve as a representative party, including providing testimony at deposition and trial, if necessary.
    • 3. Plaintiff represents and warrants that he/she/it is fully authorized to enter into and execute this certification.
    • 4. If a class action is filed, Plaintiff will not accept any payment for serving as a representative party on behalf of a class beyond the Plaintiff's pro rata share of any recovery, except such reasonable costs and expenses (including lost wages) directly relating to the representation of the class as ordered or approved by the court.
    • 5. For purposes of a class action, Plaintiff has made no transaction(s) during the Class Period in the debt or equity securities that are the subject of this action except those set forth below:
  • Acquisitions (include: date shares were acquired, number of shares acquired, and acquisition price per share. Separate each item with a comma. For multiple acquisitions, separate each acquisition with a new line):
  • Sales (include: date shares were sold, number of shares sold, and selling price per share. Separate each item with a comma. For multiple sales, separate each sale with a new line.):
  • During the three years prior to the date of this certification, Plaintiff has not sought to serve or be served as a representative party for a class in an action filed under the federal securities law except if detailed below:

Click to view Retention Agreement