ProShares UltraShort Dow 30 Fund (Symbol: DXD) Class Action Filed by Bernstein Liebhard LLP
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NEW YORK, NY, Oct 01 (MARKET WIRE) -- Bernstein Liebhard LLP filed a class action lawsuit on October 1, 2009 in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired shares in the UltraShort Dow 30 fund (the "DXD Fund") (NYSE: DXD), an exchange-traded fund ("ETF") offered by ProShares Trust ("ProShares"), pursuant or traceable to ProShares' false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the "Registration Statement") issued in connection with shares of the DXD Fund (the "Class"). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the "Securities Act"). The complaint names ProShares, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, "Defendants"). ProShares sells its Ultra and UltraShort ETFs as "simple" directional plays. As marketed by ProShares, Ultra ETFs are designed to go up when markets go up; UltraShort ETFs are designed to go up when markets go down. The DXD Fund is one of ProShares' UltraShort ETFs. The DXD Fund seeks investment results that correspond to twice the inverse (-200%) daily performance of the Dow Jones Industrial Average ("DJIA"). Accordingly, the DXD Fund is supposed to deliver double the inverse return of the DJIA, which fell approximately 34 percent from January 2, 2008 through December 31, 2008, ostensibly creating a profit for investors who anticipated a decline in the DJIA. In other words, the DXD Fund should have appreciated by over 68 percent during this period. However, the DXD Fund rose only 7 percent during this period. The complaint alleges the Defendants violated the Securities Act by failing to disclose the following risks, inter alia, in the Registration Statement: (1) if DXD Fund shares were held for a time period longer than one day, the likelihood of catastrophic losses was huge; and (2) the extent to which performance of the DXD Fund would inevitably diverge from the performance of the DJIA -- i.e., the overwhelming probability, if not certainty, of spectacular divergence. Plaintiff in the DXD Action seeks to recover damages on behalf of all Class members who purchased or otherwise acquired shares of ProShares DXD. If you purchased or otherwise acquired ProShares DXD shares, and either lost money on the transaction or still hold the shares, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than November 30, 2009. A "lead plaintiff" is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action. If you purchased or otherwise acquired shares in the DXD Fund, or any ProShares leveraged funds, and either lost money on the transaction or still hold the shares, please contact Christian Siebott or Joseph R. Seidman, Jr. at (877) 779-1414. Bernstein Liebhard has pursued hundreds of securities and consumer cases and recovered approximately $2 billion for its clients. It has been named to The National Law Journal's "Plaintiffs' Hot List" in each of the last six years. Bernstein Liebhard has also filed cases concerning ProShares' SRS, SKF, and DUG funds. You can view a copy of these complaints, as well as the DXD complaint, online at http://www.bernlieb.com, or obtain them from the court. Bernstein Liebhard LLP 10 East 40th Street New York, New York 10016 (877) 779-1414 www.bernlieb.com ATTORNEY ADVERTISING. Copyright 2009 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter. Contact Information: Christian Siebott Joseph R. Seidman, Jr. Bernstein Liebhard LLP http://www.bernlieb.com (212) 799-1414 Copyright 2009, Market Wire, All rights reserved. -0-