According to the Complaint, Direxion Shares ETF Trust is a Delaware statutory trust and a registered investment company offering a variety of exchange-traded funds (ETFs), including JNUG & NUGT, as listed and traded on the NYSE Arca, Inc.

The Complaint alleges that throughout the Class Period, Direxion provided fraudulent and misleading information in its public disclosures, from the registration to the following SEC information disclosures; that all of the Direxion 3x or 2x leveraged ETFs, by its design, are shorting tools, no matter the bull or bear in their names, and that Direxion and all responsible defendants knew it either in Funds’ design or in operation, and tried all the ways to cover the truth in its public disclosures. Finally, the Complaint alleges that Direxion practiced all tactics to deceive and mislead investors, control and manipulate prices to serve its illegal market manipulation purposes.

On August 26, 2022, Plaintiff filed an amended Complaint. Plaintiff corrected the amended Complaint on September 1. On September 13, 2022, Plaintiff filed a second amended Complaint. Defendants filed a Motion to Dismiss the second amended Complaint on November 14. On December 5, Plaintiff filed a third amended Complaint. The Court denied Defendants' Motion to Dismiss as moot on December 14.

Defendants filed a Motion to Dismiss the third amended Complaint on January 20, 2023. On August 25, the Court issued an Order granting Defendants' Motion to Dismiss. The case was dismissed with prejudice.