BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased United States Oil Fund, LP ("USO" or the "Company") (NYSE: USO) securities between March 19, 2020 to April 28, 2020, inclusive (the “Class Period”). USO investors have until August 18, 2020 to file a lead plaintiff motion.
Investors suffering losses on their USO investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On May 29, 2020, Bloomberg reported that the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission had opened probes into the United States Oil Fund, LP. According to the article, the probes concerned issues including "whether shareholders were adequately informed that the ETF’s value wouldn’t necessarily move in tandem with the spot price of oil and the fund’s recent decision to purchase crude contracts that expire further out in the future."
The Company's stock has lost 75% of its value in the two months ended April 30.
The complaint alleges that throughout the Class Period, defendants stated that USO would achieve its investment objective by investing substantially all of its portfolio assets in the near month WTI futures contract. However, unbeknownst to investors, USO's purported investment objective and strategy was unfeasible due to market conditions in early 2020, including a "super contango" in which the futures prices for oil substantially exceeded the spot price because storage facilities in Cushing, Oklahoma approached capacity. Instead of revealing the known impacts and risks, USO held an offering of billions of dollars of USO shares in March 2020.
If you purchased USO securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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