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Case Status:    SETTLED
On or around 03/20/2012 (Date of order of distribution of settlement)

Filing Date: March 19, 2010

According to the complaint filed March 19, 2010, the lawsuit, filed in federal court in the Northern District of California under Case No. 10-CV-1171 CRB, alleges that this mutual fund misled investors by failing to disclose that because the Fund "resets" daily, the Fund is unsuitable for investors who plan to hold it for longer than one trading session, particularly in volatile markets.

For example, between March 20, 2008 and February 22, 2010, the price of the U.S. Treasury long bond fell by 4.91%. A reasonable investor would expect the share price of the Fund to increase by the same amount over the same period. However, the Fund price fell over the same period by 11.29%.

On June 29, 2010, the Court denied the Defendants’ Motion to Transfer this action and Granted the Rydex Litigation Group’s motion to be appointed lead plaintiff and their selection of lead counsel. On August 13, 2010, a First Amended Class Action Complaint was filed by the Rydex Litigation Group against the defendants. The defendants responded by filing two motions to dismiss on October 8, 2010.

On January 5, 2011, the motions were granted in part and denied in part. According to the Order, Fthe Rydex Defendants’ motion to dismiss [dkt. #39] is denied. The Independent Trustee Defendants’ motion to dismiss [dkt. #42] is denied with respect to the arguments regarding lack of timeliness, loss causation, control liability, and standing as to the Advisor, Investor, and C Class shares issued pursuant to the July 2007 and July 2008 Registration Statements. The Independent Trustee Defendants’ motion to dismiss is granted with respect to the claims under the July 2009 Registration Statement for lack of standing.

On July 28, 2011, the plaintiffs filed an unopposed motion for preliminary approval of a proposed class action settlement. According to the Stipulation and Agreement of Settlement, the proposed settlement is $5,500,000 in cash.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: RYJAX
Company Market: Open-end Fund
Market Status: Open-end Fund

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. California
DOCKET #: 10-CV-1171
JUDGE: Hon. Charles R. Breyer
DATE FILED: 03/19/2010
CLASS PERIOD START: 03/19/2007
CLASS PERIOD END: 03/19/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Sparer Law Group
    100 Pine Street, 33rd Floor, Sparer Law Group, CA 94111
    415.217.7300 415.217.7307 · info@sparerlaw.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 10-CV-1171
JUDGE: Hon. Charles R. Breyer
DATE FILED: 08/13/2010
CLASS PERIOD START: 03/19/2007
CLASS PERIOD END: 03/19/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Sparer Law Group
    100 Pine Street, 33rd Floor, Sparer Law Group, CA 94111
    415.217.7300 415.217.7307 · info@sparerlaw.com
No Document Title Filing Date