Catalyst Capital Advisors LLC : Catalyst Hedged Futures Strategy Fund Securities Litigation
On or around 06/26/2019 (Other)
Filing Date: April 28, 2017
According to the law firm press release, the complaint alleges that after the Catalyst Futures Fund was reorganized as a mutual fund, defendants marketed and sold shares of the Fund as a low-risk, low-volatility investment with minimal correlation to the U.S. equity market. The Prospectuses for the Fund stated that the Fund "places a strong focus on risk management that is intended to provide consistency of returns and to mitigate the extent of losses. . . . [T]he Fund employs strict risk management procedures to adjust portfolio exposure as necessitated by changing market conditions." The complaint alleges that these statements and others like them in the Fund's Prospectuses and Registration Statements issued in connection with the offerings of Fund shares were inaccurate statements of material fact because they did not disclose that the Catalyst Futures Fund continued to invest as if it were a hedge fund, taking massive directional bets against U.S. stock market indices through complex derivative instruments, thereby exposing investors to the heightened risk of loss of capital.
On January 8, 2018, the Court issued an Order appointing Co-Lead Plaintiffs and Co-Lead Counsel. On March 30, Co-Lead Plaintiffs filed an amended Complaint. Defendants filed a Motion to Dismiss the amended Complaint on June 5. On March 7, 2019, Lead Plaintiffs dismissed one of the individual Defendants. On June 25, the Court issued an Order granting Defendants' Motion to Dismiss the amended Complaint, dismissing the claims with prejudice.
Company & Securities Information
Defendant: Catalyst Capital Advisors LLC
Industry: Other (Mutual Fund)
Headquarters: United States
Ticker Symbol: HFXAX
Company Market: Open-end Fund
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.
First Identified Complaint
Roger Emerson, et al. v. Catalyst Capital Advisors LLC , et al.