SAN DIEGO & CHICAGO--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed against LJM Funds Management, Ltd. The complaint is brought on behalf of all purchasers of LJM Preservation and Growth Fund ("LJMIX") shares between February 28, 2015 and February 7, 2018, for alleged violations of the Securities Act. LJM Funds Management, Ltd. is the investment advisor to LJMIX, a mutual fund that purports to invest primarily in purchased and sold call and put options on Standard & Poor’s 500 Futures Index (“S&P”).
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LJMIX Accused of Exposing Investors to Catastrophic Losses
According to the complaint, LJMIX filed multiple Registration Statements and Prospectuses in connection with the sale of LJMIX, stating that "[LJMIX] seeks capital appreciation and capital preservation with low correlation to the broader U.S. equity market." LJMIX further represented that "[t]he Fund aims to preserve capital, particularly in down markets (including major market drawdowns), through using put option spreads as a form of mitigation risk." Although LJMIX represented that it was acting in its investors' best interests, LJMIX was not focused on capital preservation and left investors exposed to an unacceptably high risk of catastrophic losses. When the S&P fell approximately 4.6% on February 5, 2018, LJMIX plunged over 80% to close at $1.94 on February 7, 2018.
LJMIX Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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