U.Y.G. Why? You Ain't Got No Alibi, You're Ugly

You knew these were coming down the pike!

It was only a matter of time…

Bernstein Liebhard LLP filed a class action lawsuit on October 13, 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 Ultra Financials Fund (the “UYG Fund”) (NYSE: UYG), 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 UYG Fund (the “Class”). The Class is seeking to pursue
remedies under Sections 11 and 15 of the Securities Act of 1933 (the
“Securities Act”).

Here are the items the law firm believes that ProShares failed to disclose:

(1) if UYG 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 UYG Fund would inevitably diverge from
the performance of the DJUSFI — i.e., the overwhelming probability, if
not certainty, of spectacular divergence.

This will be interesting to say the least…

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