LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of investors who purchased Easterly ROCMuni High Income Municipal Bond Fund f/k/a Principal Street High Income Municipal Fund (“Easterly” or the “Fund”) (NASDAQ: RMHIX, RMHVX, RMJAX) shares between July 29, 2022 and June 12, 2025, inclusive (the “Class Period”). Easterly investors have until September 22, 2025 to file a lead plaintiff motion.
IF YOU SUFFERED A LOSS ON YOUR EASTERLY ROCMUNI HIGH INCOME MUNICIPAL BOND FUND (RMHIX, RMHVX, RMJAX) INVESTMENTS, CLICK HERE TO SUBMIT A CLAIM TO POTENTIALLY RECOVER YOUR LOSSES IN THE ONGOING SECURITIES FRAUD LAWSUIT.
You can also contact the Law Offices of Frank R. Cruz to discuss your legal rights by email at [email protected], by telephone at (310) 914-5007, or visit our website at www.frankcruzlaw.com.
What Happened?
On June 13, 2025, the Fund abruptly slashed the value of its shares by 30%, with the value of shares continuing to fall in subsequent days. Industry news source The Bond Buyer reported the collapse was indicative of Fund-specific issues like “flawed pricing,” “illiquidity,” and the fact that the Fund was insufficiently “diversified.” The article further noted that the Fund was heavily invested in junk investments with a “lack of credit transparency.” According to the article, many bonds traded at a massive discount to their previously evaluated prices, including one instance where an investor paid just four cents for what had previous been represented as $3.2 million in bonds for a metal recycling company.
The total net assets of the Fund have collapsed from over $230 million as of March 31, 2025 to less than $17 million as of July 8, 2025.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Fund’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the 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; (2) that the Fund had implemented a fundamentally flawed pricing and valuation methodology which had systematically inflated the Fund’s net asset value (“NAV”) and individual asset valuations; (3) that the Fund was more heavily invested in illiquid assets than disclosed in the Offering Materials; (4) That the Fund’s assets were more closely correlated and less diversified than disclosed in the Offering Materials; (5) That, as a result of the foregoing, the Fund’s stated NAV, NAV per share, individual asset valuations, and historical performance were materially overstated; (6) that, as a result, the Fund was subject to a material undisclosed risk of a sudden collapse in the price of Fund shares; and (7) as a result, Defendants’ positive statements about the Fund’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Easterly shares, wish to learn more about this action, or have any questions concerning this announcement or your rights or interests with respect to these matters, please click HERE or contact us at:
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Telephone: 310-914-5007
Email: [email protected]
Visit our website at: www.frankcruzlaw.com
