LJM Funds settled their Class Action suit arising from the February 5, 2018 VIX crash
GARDEN CITY, N.Y., Dec. 6, 2019 /PRNewswire/ -- Investors in LJM Preservation and Growth Fund will get pennies on the dollar from the Class Action. Proof of Claim in the Class is due by December 11, 2019.
But if this investment was the recommendation of a broker, or was the decision of an Investment Advisor, there may be additional sources for recovering investor losses.
Deutsch & Lipner is a New York law firm representing investors nationwide. In 2019, Deutsch & Lipner won an American Arbitration Association award for an investor against an Investment Advisor who bought LJM. The investor won full compensation, attorneys' fees and costs.
The arbitrator found the advisor liable for breach of contract, negligence, breach of fiduciary duty and violations of state securities laws.
The experienced attorneys at Deutsch & Lipner showed that the Fund was a ticking time bomb -- demonstrably risky. The Fund had a history of skewed returns, and, while opaque to ordinary investors, investment professionals who conducted real due diligence either did not invest, or pulled clients out. A 2018 change in the LJM Prospectus and then in the size of the Fund foreshadowed the coming crash.
The arbitrator wrote: "Lack of correlation between LJM's performance and that of the stock market did not mean that the investment was less risky than equities or bonds.... LJM was subject to a 'tail risk'; an outlier risk of a catastrophic event, exhibited by LJM Fund's negative skew."
Investors who bought the LJM Preservation and Growth Fund through a broker or advisor should contact Deutsch & Lipner for a confidential consultation. Deutsch & Lipner can be reached at 516-294-8899 or at DeutschLipner.com.
SOURCE Deutsch & Lipner
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