The litigation follows a sharp decline in the fund’s value beginning June 20, 2025, which ultimately forced the liquidation of the fund. While U.S. District Judge Denise Cote dismissed several counts in a recent August 17 order, she allowed Securities Act claims to proceed regarding the fund’s exposure to distressed and illiquid securities. The court has not yet reached a final determination on liability, but the ruling validates concerns that the fund’s underlying risk profile did not match its conservative billing.
Investors Eye FINRA Claims Over Easterly ROCMuni Fund Losses
A federal court ruling in the Southern District of New York has cleared a path for potential legal action against brokerage firms that marketed the Easterly ROCMuni High Income Municipal Bond Fund. Investors who suffered losses now face a window to pursue recovery through FINRA arbitration for alleged misrepresentation.
Securities attorney Jake Zamansky, whose firm is leading the call for claims, argues that advisors failed to disclose the presence of high-yield, unrated assets to retail clients. Affected investors—specifically those holding ticker symbols RMJAX, RMHVX, or RMHIX—may now seek damages from firms including Janney Montgomery Scott, Stifel Nicholas, OSAIC Wealth, and National Financial Services LLC. The potential claims center on charges of unsuitable investment recommendations, failure to supervise, and material omissions regarding the fund's actual risk exposure.
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