According to the Complaint, James Alpha Funds Trust d/b/a Easterly Funds Trust (the "Trust") is registered under the Investment Company Act of 1940 as an open-ended investment company with several investment funds, including the Easterly ROCMuni High Income Municipal Bond Fund. This class action was filed against the Trust, its predecessor registrant, two investment advisers, two underwriters, and twelve individual Defendants.

The Complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Easterly ROCMuni Fund had marked tens of millions of dollars’ worth of its portfolio assets at artificially inflated prices that did not reasonably reflect the fair value of those assets; (ii) the Easterly ROCMuni Fund had implemented a fundamentally flawed pricing and valuation methodology which had systematically inflated the Easterly ROCMuni Fund’s NAV and individual asset valuations; (iii) the Easterly ROCMuni Fund was more heavily invested in illiquid assets than disclosed in its Offering Materials; (iv) the Easterly ROCMuni Fund’s assets were more closely correlated and less diversified than disclosed in its Offering Materials; (v) as a result, the Easterly ROCMuni Fund’s stated NAV, NAV per share, individual asset valuations, and historical performance were materially overstated; and (vi) consequently, the Easterly ROCMuni Fund was subject to a material undisclosed risk of a sudden collapse in the price of Easterly ROCMuni Fund shares. The Complaint further alleges that on June 13, 2025, the Fund abruptly marked down the value of Easterly ROCMuni Fund shares by 30%.