The Easterly ROCMuni High Income Municipal Bond Fund suffered a sharp and unexpected collapse, leaving many investors with significant losses. On June 13, 2025, the Fund’s share value plunged by 30%, and its net assets declined from more than $230 million to under $17 million in just a few months. This dramatic downturn has triggered questions about whether the Fund’s pricing practices, investment strategies, and disclosures were adequate—or even honest.
If you’ve been directed toward making an investment you didn’t fully understand or suspect might have been fraudulent, you’re not alone—the securities fraud lawyers at Meyer Wilson Werning can help. Reach out today to discuss your next steps with us.
What Went Wrong at Easterly ROCMuni
The collapse of the Easterly ROCMuni Fund, previously known as the Principal Street High Income Municipal Fund, is now under scrutiny from investors and legal professionals alike.
Flawed Valuation and Investment Practices
The Fund reportedly used questionable pricing strategies that inflated the value of its assets. This led investors to believe their investments were far more secure than they actually were.
- Pricing methodologies did not reflect true market values, especially for illiquid and distressed bonds.
- Some bonds held by the Fund were later acquired by outside investors for mere cents on the dollar.
The Fund also lacked proper diversification, concentrating too heavily in low-rated or “junk” municipal bonds. This created financial instability that may have been avoidable with more prudent asset management.
Misleading Disclosures and Omitted Risks
There are growing allegations that the Fund’s management failed to provide accurate disclosures. Instead, investors were left unaware of key risks tied to the investment strategy.
- Disclosures may have omitted material facts about the Fund’s portfolio risks and performance.
- Misleading statements reportedly obscured the Fund’s financial vulnerability.
These issues have prompted many to question whether the Fund’s management misled investors in violation of securities laws and consumer protection regulations.
We Have Recovered Over
$350 Million for Our Clients Nationwide.
Legal Rights and Options for Affected Investors
Investors who purchased shares between May 5, 2023, and June 12, 2025, and have experienced significant financial losses may consider pursuing arbitration to recover their losses.
Potential Claims and Allegations
Legal actions against the Fund’s management could include:
- False statements about the Fund’s financial health and investment approach
- Failure to disclose investment risks, especially related to junk bond exposure and illiquid assets
Investors who suffered substantial financial losses may be able to recover compensation through arbitration if the Fund’s disclosures were misleading or incomplete.
Understanding the Arbitration Process
Investors wishing to pursue arbitration should gather evidence such as offering materials, account statements, and any communications with advisors or fund managers. Arbitration can be a more suitable option for those seeking a personalized resolution outside of a class action lawsuit.
How Meyer Wilson Werning Supports ROCMuni Investors
At Meyer Wilson Werning, we represent investors who have suffered losses due to misleading disclosures, unsuitable investment products, or negligent fund management. If you held shares in the Easterly ROCMuni High Income Municipal Bond Fund and believe you were misled or inadequately informed, leading to significant losses, we can help you understand your legal rights and options for recovery.
Our firm has experience handling complex investment loss cases. We will evaluate your situation and guide you through the process of seeking restitution. Contact us today to start your journey of recovery.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What caused the collapse of the Easterly ROCMuni Fund?
The Fund’s collapse was tied to questionable pricing practices, poor diversification, and a heavy concentration in low-rated municipal bonds. These issues led to a sudden 30% share value drop and a massive decline in net assets.
Were investors properly warned about the risks?
Many investors allege they were not. Disclosures may have omitted or misrepresented material facts about the Fund’s risk profile, including its reliance on illiquid and distressed debt.
Can I pursue a legal claim if I lost money in the Fund?
Yes. If you purchased shares and suffered losses due to misleading disclosures or unsuitable investment recommendations, you may be eligible to pursue recovery.
What kind of legal claims are being considered?
Potential claims include false or misleading statements, failure to disclose risks, and breach of fiduciary duty. Legal action could focus on how the Fund was marketed and whether risks were downplayed.
Recovering Losses Caused by Investment Misconduct.
