Rydex Series Funds (the Fund) is a mutual fund.

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, the 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 entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on September 13. On February 10, 2012, the Court granted final approval of the Settlement and entered Final Judgment.