Class action filed against ProShares inverse leveraged ETF

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A class action has been filed against ProShares for allegedly providing false and misleading information relating to its UltraShort Financials fund.

The filing against ProShares by US law firm Pomerantz Haudek Grossman & Gross cites "false and misleading registration statement, prospectuses, and statements of additional information." The fund is an inverse leveraged ETF, seeking investment returns that are two times the inverse performance of the Dow Jones US Financials index, which represents large US banks and insurance companies. However, the law firm alleges the registration statement filed by ProShares failed to adequately disclose that fund shares should not be held for more than a single trading day and are not an appropri...

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