UCO INVESTIGATION: Bronstein, Gewirtz & Grossman, LLC Notifies Investors of ProShares Ultra Bloomberg Crude Oil Investigation

NEW YORK, NY / ACCESSWIRE / July 29, 2020 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of ProShares Ultra Bloomberg CrudeOil("UCO" or "the Company") (NYSE:UCO). Investors who purchased UCO securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/uco.

The investigation concerns whether UCO and certain of its officers and/or directors have violated federal securities laws.

In early 2020, oil demand fell precipitously as governments imposed lockdowns, and businesses halted operations in response to the COVID-19 pandemic. Moreover, in early March 2020, Saudi Arabia and Russia launched an oil price war, increasing production and slashing export prices in a bid to increase the global market share of their domestic petrochemical enterprises. As excess oil supply increased and oil prices waned, the facilities available for storage in Cushing, Oklahoma approached capacity, ultimately causing a rare market dynamic known as "super contango," in which the futures prices for oil substantially exceed the spot price. At the same time, retail investors began pouring hundreds of millions of dollars into UCO in an attempt to "buy the dip" on the expectation that the price of oil would rebound as economies exited lockdown periods and the Russia/Saudi oil price war ended. Because of the nature of UCO's investment strategy, these converging factors caused UCO to suffer significant losses and undermined UCO's ability to meet its ostensible investment objective. Nevertheless, rather than fully disclose the known impacts and risks to UCO as a result of these threats, the Fund instead opted to conduct a massive offering of UCO shares, ultimately selling billions of dollars' worth of UCO shares to the market. On March 6, 2020, the Fund announced a public offering of up to $5,123,657,025 in UCO shares via a Form S-3 Registration Statement filed with the U.S. Securities and Exchange Commission (the "March Offering"). After the March Offering, UCO quickly deteriorated, as the Fund suffered billions of dollars in losses and was forced to abandon its investment strategy. Through a series of investment overhauls, UCO was forced to transform from the passive ETF an actively-managed fund struggling to avoid a total implosion. In April and May 2020, UCO belatedly acknowledged the threats and adverse impacts that the Fund had been experiencing at the time of the March offering, but which they had failed to disclose to investors in a timely manner.

If you are aware of any facts relating to this investigation, or purchased UCO shares, you can assist this investigation by visiting the firm's site: www.bgandg.com/uco. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.

Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com

SOURCE: Bronstein, Gewirtz & Grossman, LLC