ProShares Ultra and UltraShort ETFs
On July 15, 2009, the Massachusetts Secretary of State announced that Massachusetts had begun a probe into the sales practices of ProShares. ProShares Ultra and UltraShort ETFs (ETFs) were sold by brokerage firms such as Morgan Stanley, Raymond James and Merrill Lynch, among others.
It is alleged that ProShares ETFs subjected investors to substantially more risk than was disclosed, resulting in enormous losses. ProShares ETFs were marketed as simple-to-execute investments which would go up when the markets went down.
ProShares ETFs were based on a complex mathematical formula which ProShares now concedes prevented the funds from achieving their stated investment objectives if the funds were held for more than one day.
In June 2009, FINRA issued an alert bulletin and Regulatory Notice 09-31, which cautioned that leveraged ETFs are extremely confusing products and the marketing and sale of these products to unsophisticated retail investors is dangerous.
Contact McCabe Rabin for an evaluation of your potential claim at 877-915-4040 or Click Here to fill out our contact form.