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Case Status:    SETTLED
On or around 01/06/2012 (Date of order of distribution of settlement)

Filing Date: February 10, 2009

According to a press release dated February 10, 2009, the Complaint alleges that throughout the Class Period, Defendants grossly and falsely overstated Fund's net asset value ("NAV") by including the full value of a $49.1 million deferred tax asset in the Fund's stated NAV, without establishing an appropriate valuation reserve against the risk that the Fund could or would never utilize or recognize the deferred tax asset.

The Complaint further alleges that during the Class Period, Defendants also concealed the fact that the deferred tax asset was the Fund's largest asset and accounted for more than one-half of the Fund's stated NAV.

On December 19, 2008, Defendants caused the Fund to announce that it had established a $49.1 million valuation reserve against the deferred tax asset, essentially reducing the value of the deferred tax asset to zero and reducing the Fund's stated NAV by $49.1 million.

When Defendants caused the Fund to write down the deferred tax asset to zero on December 19, 2008, and reduced the Fund's stated NAV accordingly, the market price at which the Fund's shares traded plummeted by nearly 50 percent, dropping from $7.40 immediately before the announcement to just $3.81 after it, causing Fund shareholders to lose tens of millions of dollars.

In ignorance of the false and misleading nature of the statements described in the complaint, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of the Fund's shares. Had plaintiff and the other members of the Class known the truth, they would not have purchased said shares, or would not have purchased them at the inflated prices that were paid.

On April 20, 2009, the Court appointed the lead plaintiff and approved the selection of co-lead counsel. On June 04, 2009, a First Amended Class Action Complaint was filed by the plaintiffs in the action. On January 06, 2010, in response to their previously filed motion, the US district court judge refused to dismiss a class action securities fraud claim against the defendants.

According to a press release dated July 22, 2010, a hearing will be held on September 13, 2010, at 9:30 a.m. at the United States District Court for the Northern District of Texas (the “Federal Court”), Courtroom 1627, United States Courthouse, Dallas Division, 1100 Commerce Street, Dallas, Texas 75242, in connection with the proposed settlement (the “Settlement”) of the class action captioned Terri Morse Bachow v. Swank Energy Income Advisers, LP, et al., C.A. No. 3:09-CV-0262-K. The Court will determine whether to approve the Settlement of the class action before it as fair, reasonable, and adequate.

On September 13, 2010, an Order and Final Judgment was issued by the Court in accordance with the terms and conditions of the Stipulation and Agreement of Settlement dated May 17, 2010.

On March 29, 2011, an Order on the Unopposed Motion to Approve Payment of Net Settlement Fund to Authorized Claimants was granted by the Court.

COMPANY INFORMATION:

Sector: Financial
Industry: Misc. Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SRV
Company Market: ETF
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Texas
DOCKET #: 09-CV-00262
JUDGE: Hon. Ed Kinkeade
DATE FILED: 02/10/2009
CLASS PERIOD START: 09/01/2008
CLASS PERIOD END: 12/19/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Shabel & Denittis, P.C. (New Jersey)
    5 Greentree Centre, Suite 302, Shabel & Denittis, P.C. (New Jersey), NJ 08053
    856.797.9951 856.797.9951 ·
  2. Stanley, Mandel & Iola LLP (Dallas)
    3100 Monticello Avenue, Suite 750 , Stanley, Mandel & Iola LLP (Dallas), TX 75205
    214.443.4300 ·
  3. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: N.D. Texas
DOCKET #: 09-CV-00262
JUDGE: Hon. Ed Kinkeade
DATE FILED: 06/04/2009
CLASS PERIOD START: 09/01/2008
CLASS PERIOD END: 12/19/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Shabel & Denittis, P.C. (New Jersey)
    5 Greentree Centre, Suite 302, Shabel & Denittis, P.C. (New Jersey), NJ 08053
    856.797.9951 856.797.9951 ·
  2. Stanley, Mandel & Iola LLP (Dallas)
    3100 Monticello Avenue, Suite 750 , Stanley, Mandel & Iola LLP (Dallas), TX 75205
    214.443.4300 ·
  3. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date