Block & Leviton LLP Announces the Filing of a Class Action Lawsuit Against United States Oil Fund, LP for Securities Laws Violations; Investors Who Lost Money Should Contact the Firm

6/20, 1:55 AM (Source: GlobeNewswire)

BOSTON, June 19, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, announces that a securities fraud lawsuit has been filed against United States Oil Fund, LP (NYSE: USO) and certain of its executives. The lead plaintiff deadline is August 18, 2020. Investors who purchased USO shares between March 19, 2020 and April 28, 2020, are encouraged to contact the firm for a free case evaluation

USO is an exchange traded fund (“ETF”) that was purportedly designed to track the daily changes in percentage terms of the spot price of West Texas Intermediate (“WTI”) light, sweet crude oil delivered to Cushing, Oklahoma. Because retail investors are generally not equipped to buy and sell barrels of oil or authorized to trade oil futures, ETFs such as USO provide one of the primary means by which such investors can gain exposure to fluctuations in oil prices.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, alleges that the defendants stated that USO would achieve its investment objective by investing substantially all of its portfolio assets in the near month WTI futures contract. However, unbeknownst to investors, extraordinary market conditions in early 2020 made USO’s purported investment objective and strategy unfeasible. As excess oil supply increased and oil prices plummeted, the facilities available for storage in Cushing approached capacity, causing a “super contango” in which the futures prices for oil substantially exceeded the spot price.

Rather than disclose the known impacts and risks to the Fund, USO held an offering of billions of dollars of USO shares in March 2020. Ultimately, the Fund suffered billions of dollars in losses and was forced to abandon its investment strategy. It was not until late April and May 2020, when defendants belatedly acknowledged the extreme threats and adverse impacts that the Fund had been experiencing at the time of the March offering, but which they failed to disclose to investors.

If you purchased or acquired shares of USO and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockesq.com, or at https://shareholder.law/uso

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets.  The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States.  The firm’s lawyers have recovered billions of dollars for its clients.

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CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockesq.com

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