2nd Circ. Tosses Investor Suit Over ProShares ETF Losses

Law360, Los Angeles (July 22, 2013, 4:07 PM EDT) -- The Second Circuit on Monday affirmed a lower court's decision tossing a consolidated investor class action over losses in ProShares Advisors LLC's exchange-traded funds, saying the lower court correctly ruled that ProShares' affiliated trusts adequately disclosed the risks attached to the investments.

A three-judge panel said U.S. District Judge John G. Koeltl was right to dismiss the investors' suit because ProShares' ETF offering prospectuses made clear that the investments could be volatile and acknowledged the potential risks for investors who held the ETFs for longer than one day.

The plaintiffs...
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