Class Alleges ProShares ETF Is 'Defective Product'

Law360, New York (August 7, 2009, 4:47 PM EDT) -- A group of investors in a leveraged inverse exchange-traded fund has sued ProShares Advisors LLC, alleging that the financial advisory firm did not reveal the risks involved in investing in the vehicle, leading to steep losses.

In a proposed class action launched Wednesday in the U.S. District Court for the Southern District of New York, investors in ProShares' UltraShort Real Estate fund said that the ETF was not the simple directional play that ProShares claimed, but rather a risky short-term investment that should not have been...
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