Oil Future ETF Securities Fraud Litigation

Problem 

  • Investigate and identify wrongful conduct of an oil futures ETF manager during a period of extreme market volatility of oil prices in April 2020

  • Develop a damages model to account for transactions occurring after each of the relevant events (including ETF creation, change of investment objectives, suspension of subscription, etc.)

  • Estimate damages both on a class-wide basis and investor-by-investor basis  

 

Solution

  • We analyzed the trading history to identify each of the ETF manager’s decisions  which were not compliant with the stated investment policy and were against the best interest of investors in the fund

  • Fideres built but-for indicative prices of the ETF, based on criteria set in the fund’s prospectus

  • We used statistical analysis to identify anomalous tracking errors caused by the ETF manager’s potentially wrongful decisions

 

Result

  • Factual allegations were used for the filing of a complaint which is currently in the class certification stage

  • Lead counsel used our multi-trader model to estimate class-wide damages