Infinity Q Alpha Funds (IQDAX, IQDNX) $48M securities settlement

In re Infinity Q Diversified Alpha Fund and Infinity Q Volatility Alpha Fund, L.P. Securities Litigation.

Defendants agreed to pay up to $48 million to settle a securities class action lawsuit to avoid further litigation.

This is a federal securities class action on behalf of all persons and entities who purchased the Infinity Q Diversified Alpha Fund Investor Class shares (IQDAX) or Institutional Class shares (IQDNX) between December 21, 2018, and February 22, 2021, both dates inclusive.

The Complaint alleged that the Company and its Leaders made false and/or misleading statements and/or failed to disclose that:

• Infinity Q’s Chief Investment Officer made adjustments to certain parameters within the third-party pricing model that affected the valuation of the swaps held by the Fund;

• consequently, Infinity Q would not be able to calculate Net Asset Value (NAV) correctly;

• as a result, the previously reported NAVs were unreliable;

• because of the foregoing, the Fund would halt redemptions and liquidate its assets; and

• as a result, the Prospectuses were materially false and/or misleading and failed to state information required to be stated therein.