|Company name||ProShares Short VIX Short-Term Futures ETF|
|Class period||May 12, 2017 – February 5, 2018|
|Court||New York Southern District Court|
NEW YORK, February 18, 2019 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Courts for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired ProShares Short VIX Short-Term Futures ETF (NASDAQ: SVXY) securities between May 12, 2017 and February 5, 2018 (the “Class Period”). Investors have until April 1, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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.
If you purchased ProShares securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.