Free Consultation
(800) 259-9010
(800) 259-9010
As the novel coronavirus (COVID-19) continues to adversely affect the markets and cause crude oil prices to drop, the number of inverse and leveraged exchange-traded notes (ETNs), exchange-traded funds (ETFs) and exchange-traded products (ETPs) involving crude oil that have been forced to close, delist, or automatically accelerate continues to grow and this has caused more losses for investors.
Right now, our broker fraud lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) are working with leveraged and inverse ETF and ETP investors throughout the US to help them explore their legal options.
Below is a list of inverse and leveraged ETNs, ETFs and ETPs that have impacted by the market volatility caused by COVID-19:
Leveraged and inverse ETPs are not for every investor. Unfortunately, brokers who recommended them may have made unsuitable investment recommendations or failed to apprise customers of the risks they were taking on especially during high volatility moments when massive price fluctuations happen.
In March, many inverse and leveraged ETNs that shuttered were forced to issue a mandatory redemption prematurely–and we’re talking more than 20 years early in some cases. Such early redemptions that happen when markets are in session can lead to an ETN’s price’s dropping under the minimum indicative value. For many investors, this means getting paid much less than they would have otherwise.
As for many of the exchange-traded products that were delisted, causing them to automatically be taken off the exchange, these funds weren’t shuttered. However, investors were left with positions that will be very difficult to liquidate.
For 30 years, SSEK Law Firm has represented thousands of investors, including retail investors, high net worth individual investors, and institutional investors. We have recovered many millions of dollars on their behalf, and our commitment to helping those harmed due to broker fraud or negligence even in the time of COVID-19 remains the same.
Your initial consultation with one of our leveraged and inverse ETP fraud attorneys is a free, no-obligation session.