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Financial services

Easterly ROCMuni Fund Investors Suffer Millions in Losses

Strategic Insights

— 1 min read

Shepherd Smith Edwards and Kantas, a law firm specializing in securities fraud claims, is representing several claimants in lawsuits against brokerage firms that sold high-risk, speculative junk bonds, including the Easterly ROCMuni Funds. The firm alleges that these brokerage firms failed to properly investigate the funds, which were primarily invested in tax-exempt debt securities and illiquid bonds with little financial history. The Easterly ROCMuni High Income Fund, which once held $300 million in assets, collapsed in June after a massive fire sale, leaving investors with significant losses.

Key Takeaways:

  • Shepherd Smith Edwards and Kantas is representing several claimants in lawsuits against brokerage firms that sold high-risk, speculative junk bonds, including the Easterly ROCMuni Funds.
  • The firm alleges that these brokerage firms failed to properly investigate the funds, which were primarily invested in tax-exempt debt securities and illiquid bonds with little financial history.
  • The Easterly ROCMuni High Income Fund, which once held $300 million in assets, collapsed in June after a massive fire sale, leaving investors with significant losses.
  • The firm has filed a lawsuit on behalf of a New York investor against Osaic Wealth and is also scrutinizing Janney Montgomery Scott and other broker-dealers that may have unsuitably sold the fund to customers.
  • Shepherd Smith Edwards and Kantas has represented thousands of clients in the United States, securing many millions of dollars for investors in arbitration, mediation, and litigation.
  • The firm is offering free case consultations to investors who suffered losses in the Easterly ROCMuni Funds.

Statistics:

  • The Easterly ROCMuni High Income Fund held approximately $300 million in assets in October 2024.
  • The fund's assets dropped to $25 million by the end of June, after a massive fire sale.
  • The share price of Easterly ROCMuni Fund dropped from $7.35 to under $3 per share.
  • The firm has secured many millions of dollars for investors in arbitration, mediation, and litigation.

Sources:

  • Shepherd Smith Edwards & Kantas LLP (shepherd PLLP, prnewswire.com, September 9, 2025)

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