LOS ANGELES, July 22, 2020 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises investors that a class action lawsuit has been filed on behalf of United States Oil Fund, LP ("US Oil Fund" or the "Company") (NYSE: USO) investors that acquired securities after the Company’s March 19, 2020 registration statement.
USO is an exchange-traded fund ("ETF") 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.
The lawsuit filed on behalf of investors alleges that defendants stated that USO would achieve its investment objective by investing substantially all of its portfolio assets in the near month WTI futures contract. Due to extraordinary market conditions in early 2020, USO's purported investment objective and strategy became unfeasible. According to the complaint, 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, USO suffered billions of dollars in losses and abandoned its investment strategy. USO transformed from the passive ETF designed to track spot oil prices, which defendants had pitched to investors, into an actively managed fund. In April and May 2020, USO acknowledged the extreme threats and adverse impacts it had been experiencing at the time of its March 2020 securities offering, and which investors allege USO failed to disclose to them then. And, on May 29, 2020, Bloomberg reported that the U.S. Securities and Exchange Commission and Commodity Futures Trading Commission had both opened investigations into whether USO had properly disclosed the risks involved with the ETF.
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