LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.
If you are a shareholder who suffered a loss, click here to participate.
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.
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If you purchased USO securities during the Class Period, you may move the Court no later than August 18, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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