Easterly ROCMuni High Income Municipal Bond Fund f/k/a Principal Street High Income Municipal Fund

Case Overview
52 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 09/22/2025 |
Status: | Status: Investigating |
Company Name: | Company Name: Easterly ROCMuni High Income Municipal Bond Fund f/k/a Principal Street High Income Municipal Fund |
Court: | Court: Southern District of New York |
Case Number: | Case Number: 1:25cv06028 |
Class Period: | Class Period: 07/29/2022 - 06/12/2025 |
Ticker: | Ticker: RMHIX, RMHVX, RMJAX |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Easterly ROCMuni High Income Municipal Bond Fund f/k/a Principal Street High Income Municipal Fund (“Easterly ROC” or the “Company”) (NYSE: RMHIX, RMHVX, RMJAX) securities during the period of July 29, 2022 and June 12, 2025, inclusive (“the Class Period”). Investors have until September 22, 2025 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On June 13, 2025, the Easterly ROCMuni Fund abruptly marked down the value of Easterly ROCMuni Fund shares by 30%. The per share NAV of RMHIX was marked down from $6.15 per share the prior day to $4.33 per share; the per share NAV of RMHVX was marked down from $6.19 per share the prior day to $4.36 per share; and the per share NAV of RMJAX was marked down from $6.13 per share the prior day to $4.31 per share. The value of Easterly ROCMuni Fund shares continued to plummet in subsequent days, falling to less than $3 per share within a span of just two weeks. The total net assets of the Easterly ROCMuni Fund have collapsed from over $230 million as of March 31, 2025 to less than $17 million as of July 8, 2025.
The Easterly ROCMuni class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) the Easterly ROCMuni Fund had marked tens of millions of dollars worth' of its portfolio assets at artificially inflated prices that did not reasonably reflect the fair value of those assets; (ii) the Easterly ROCMuni Fund had implemented a fundamentally flawed pricing and valuation methodology which had systematically inflated the Easterly ROCMuni Fund's NAV and individual asset valuations; (iii) the Easterly ROCMuni Fund was more heavily invested in illiquid assets than disclosed in its Offering Materials; (iv) the Easterly ROCMuni Fund's assets were more closely correlated and less diversified than disclosed in its Offering Materials; (v) as a result, the Easterly ROCMuni Fund's stated NAV, NAV per share, individual asset valuations, and historical performance were materially overstated; and (vi) consequently, the Easterly ROCMuni Fund was subject to a material undisclosed risk of a sudden collapse in the price of Easterly ROCMuni Fund shares.
On June 13, 2025, the Easterly ROCMuni Fund abruptly marked down the value of Easterly ROCMuni Fund shares by 30%. The per share NAV of RMHIX was marked down from $6.15 per share the prior day to $4.33 per share; the per share NAV of RMHVX was marked down from $6.19 per share the prior day to $4.36 per share; and the per share NAV of RMJAX was marked down from $6.13 per share the prior day to $4.31 per share. The value of Easterly ROCMuni Fund shares continued to plummet in subsequent days, falling to less than $3 per share within a span of just two weeks. The total net assets of the Easterly ROCMuni Fund have collapsed from over $230 million as of March 31, 2025 to less than $17 million as of July 8, 2025.
The Easterly ROCMuni class action lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) the Easterly ROCMuni Fund had marked tens of millions of dollars worth' of its portfolio assets at artificially inflated prices that did not reasonably reflect the fair value of those assets; (ii) the Easterly ROCMuni Fund had implemented a fundamentally flawed pricing and valuation methodology which had systematically inflated the Easterly ROCMuni Fund's NAV and individual asset valuations; (iii) the Easterly ROCMuni Fund was more heavily invested in illiquid assets than disclosed in its Offering Materials; (iv) the Easterly ROCMuni Fund's assets were more closely correlated and less diversified than disclosed in its Offering Materials; (v) as a result, the Easterly ROCMuni Fund's stated NAV, NAV per share, individual asset valuations, and historical performance were materially overstated; and (vi) consequently, the Easterly ROCMuni Fund was subject to a material undisclosed risk of a sudden collapse in the price of Easterly ROCMuni Fund shares.