A class action has been filed against ProShares for allegedly providing false and misleading information relating to its UltraShort Oil and Gas fund.
The complaint, filed by US law firm Pomerantz Haudek Grossman & Gross, cites "false and misleading registration statement, prospectuses, and statements of additional information" issued in connection with the fund's shares.
The fund is an inverse leveraged ETF that seeks investment returns that are two times the inverse performance of the Dow Jones US Oil and Gas index.
The law firm alleges that ProShares' registration statement failed to adequately disclose that the fund's shares should not be held more than a single trading day and were not an appropriate hedge against a decline in US based oil and stocks.
It adds shareholders from outside the US may join the action, regardless of where they live or which exchange was used to purchase the securities.
This is the latest in a series of class actions filed against ProShares, following previous filings against funds such as the ProShares UltraShort S&P 500 ETF.
Other law firms have also filed against the ProShares short financial and short emerging markets funds.
Pomerantz says it was investigating other ETFs including the ProShares UltraShort Dow 30 fund, the UltraShort MSCI Emerging Markets fund, the UltraShort FTSE/Xinhua fund and the UltraShort DJ-AIG Crude Oil fund.
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From 1 March