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Securities law

Investigation into Easterly ROCMuni High Income Fund

Strategic Insights

— 1 min read

Law firm Shepherd Smith Edwards & Kantas is warning Kentucky investors who lost money in the Easterly ROCMuni High Income Fund, a municipal bond marketed and sold to them by Stifel, Nicolaus & Co. financial advisors, to contact them for a free, no-obligation case assessment phone call. The firm will be meeting with potential clients in person in Paducah, Kentucky, on August 7th-8th, 2025. The Easterly Fund has been falling in value since last year, with a 30% drop on June 13, 2025, and a further decline of over 50% through June 17, 2025. Stifel is one of the broker-dealers being sued by the firm's clients over unsuitable investment recommendations, misrepresentations, and omissions of risks.

Key Takeaways:

  • The Easterly ROCMuni High Income Fund was marketed as a municipal bond investing at least 80% of its net assets in tax-exempt debt securities, but it was actually a high-risk investment, with most of its securities being poorly rated, below-investment-grade "junk bonds."
  • The majority of the bonds in the Easterly Fund were not backed by municipalities, but rather by small companies for speculative projects.
  • The fund's value has been declining since last year, with a 30% drop on June 13, 2025, and a further decline of over 50% through June 17, 2025.
  • The fund's assets have dwindled from over $200 million at the end of March 2025 to under $17 million more recently.
  • Stifel is one of the broker-dealers being sued by the firm's clients over unsuitable investment recommendations, misrepresentations, and omissions of risks.
  • The firm has already seen a high success rate, with over 90% of its clients achieving full or partial financial recovery through awards or settlements.
  • The firm will work on a contingency basis, meaning clients will only pay for services if an award or settlement is secured.

Statistics:

  • 30%: the drop in the Easterly Fund's value on June 13, 2025
  • 50%: the further decline in the fund's value through June 17, 2025
  • $200 million: the fund's assets at the end of March 2025
  • $17 million: the fund's assets more recently
  • 90%: the success rate of the firm's clients in achieving full or partial financial recovery
  • 2 days: the duration of the meeting in Paducah, Kentucky, on August 7th-8th, 2025

Sources:

  • Shepherd Smith Edwards & Kantas LLP (no date provided)
  • PR Newswire (August 7, 2025)
  • FINRA (no date provided)

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