LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz reminds investors of the upcoming September 22, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired 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”).
IF YOU ARE AN INVESTOR WHO LOST MONEY ON EASTERLY ROCMUNI HIGH INCOME MUNICIPAL BOND FUND (RMHIX, RMHVX, RMJAX), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.
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.
If you purchased or otherwise acquired Easterly securities between July 29, 2022 and June 12, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is September 22, 2025.
Contact Us To Participate or Learn More:
If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us:
Frank R. Cruz
The Law Offices of Frank R. Cruz
2121 Avenue of the Stars, Suite 800
Century City, California 90067
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW
If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.
To be a member of the class action 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 action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
[email protected]
www.frankcruzlaw.com
