Easterly Funds ($RMHIX) NAV Collapse, Bond Overvaluation, and Liquidity Misrepresentation Case

The defendant has requested the court to dismiss the case.

S.D. New York

Court

25-CV-06028

Case number

05/05/2023

Class period Start

06/12/2025

Class period End

09/22/2025

Lead Plaintiff motion deadline

$RMHIX investors filed a claim against Easterly Funds for overstating asset valuations, misrepresenting diversification and liquidity controls, and concealing material risks tied to illiquid municipal bond holdings in its ROCMuni High Income Municipal Bond Fund.
After marking down fund NAVs by over 30% in a single day and triggering a massive loss of confidence, $RMHIX collapsed from $6.15 to under $3.00 in June 2025, erasing more than $215 million in investor assets.
$RMHIX investors can join this case to be notified about potential recovery.

Case Details:

Between May 5, 2023, and June 12, 2025, Easterly promoted the ROCMuni High Income Municipal Bond Fund (tickers: RMHIX, RMHVX, RMJAX) as a high-yield, diversified vehicle with disciplined credit analysis and robust valuation oversight. Offering materials claimed the fund employed sound risk controls, regulatory compliance, and accurate fair-value pricing practices.

In truth, the fund was concentrated in highly speculative, illiquid municipal debt and consistently overstated asset values. Key positions—such as Gladieux Metals Recycling, Proton International Alabama, and Legacy Cares—were marked far above their realizable worth. Easterly misled investors about the fund’s risk exposure, liquidity profile, and pricing methodology.

On June 13, 2025, Easterly abruptly marked down the fund’s NAV by over 30% in one day: RMHIX dropped from $6.15 to $4.33, RMHVX from $6.19 to $4.36, and RMJAX from $6.13 to $4.31. NAV fell further in the following weeks, ultimately falling below $3.

Based on these events, $RMHIX investors filed a claim against Easterly, alleging the company:
It misrepresented the fund’s diversification, pricing methods, and liquidity safeguards.
It artificially inflated NAV by overvaluing junk municipal bonds.
I withheld material risks tied to asset concentration and credit quality.
Investors believe Easterly concealed internal risks to attract inflows and maintain performance optics, resulting in catastrophic losses once markdowns were forced.

Case Type

US Securities Class Action

Case Status

Motion to dismiss

Alleged Offence

Misleading Statements,

Financial Misrepresentation,

Failure to Disclose,

Breach of Fiduciary duty

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Shock Event Date

06/13/2025

Filing date

07/22/2025

Lead Plaintiff Deadline

09/22/2025

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