Levin Law, P.A. is dedicated to protecting the financial interests of individuals nationwide. When news broke of significant investor losses tied to the Easterly ROCMuni High Income Municipal Bond Fund, Levin Law, P.A. responded swiftly, mobilizing resources and experience to pursue recovery on behalf of those affected.
With a history of class action victories and multi-million dollar recoveries, Levin Law P.A. is now investigating claims and actively representing investors in this urgent matter. The firm is driving the lawsuit against the Easterly ROCMuni Fund, aiming to hold wrongdoers accountable, clarify investor rights, and maximize potential recovery for every client.
From the first consultation to case resolution, our experienced team delivers relentless advocacy and clear communication, so investors can focus on their future with confidence. If your portfolio has been impacted, reach out today to join the class action and take the first step toward reclaiming your rightful investment.
What is the Easterly ROCMuni High Income Municipal Bond Fund?
High-yield municipal bond funds, often known as “junk bond” funds, focus on investing in municipal securities that offer higher yields due to greater credit risk. These bonds are issued by cities, states, or other entities with lower credit ratings or less financial stability. Investors are drawn to these funds for the potential of higher returns, but the tradeoff is increased exposure to default risk, liquidity concerns, and price volatility. Because these bonds tend to come from “overlooked” sectors, such funds rely on in-depth credit analysis and careful portfolio construction to balance risk and reward.
The Easterly ROCMuni High Income Municipal Bond Fund (NYSE: RMJAX, RMHVX, RMHIX) is a mutual fund with the goal of delivering long-term, yield-driven returns primarily through investment in a diversified portfolio of high-yield municipal bonds. Managed by Easterly Investment Partners, the fund emphasizes rigorous credit screening and undervalued sectors, aiming to maximize risk-adjusted yields and current income exempt from federal taxes. Recent events have put the Fund in the spotlight, as allegations surfaced that its asset valuation and portfolio disclosures misrepresented risk, leading to significant losses for investors and triggering the ongoing class action lawsuit.
Allegations Against Easterly ROCMuni Fund and Recent Developments
The Easterly ROCMuni High Income Municipal Bond Fund is facing intense scrutiny after allegations surfaced that its managers misrepresented key aspects of the fund’s portfolio, valuation practices, and risk level. Investors claim they were not fully informed of the risks involved, including a heavy concentration in illiquid and junk-rated municipal bonds, questionable asset pricing methodologies, and a lack of true diversification. These alleged actions resulted in a sudden, dramatic collapse in the Fund’s net asset value (NAV) and overall assets in mid-2025, leaving shareholders with steep, unexpected losses.
Timeline of Alleged Misconduct, Investor Losses, and Fund Collapse
- March 2025: Fund reports assets of $232 million; market seems stable.
- Early June 2025: Tightening credit markets spark redemptions; fund struggles to sell illiquid holdings.
- June 13, 2025: Sudden 30% drop in NAV; mass liquidation begins.
- June 13–23, 2025: NAV tumbles from around $6.36 to $3.09 per share; assets drop by 90%.
- July 8, 2025: Assets dwindle to less than $17 million as investor losses total between $50 million and $100 million.
The significance of these allegations cannot be overstated. Not only do they highlight failures in fund oversight and investor protection, but they also raise serious concerns about transparency and fair valuation in high-yield municipal markets. An experienced investment attorney can evaluate individual claims, pursue recovery through class actions or negotiated settlements, and help investors understand their rights.
Who Is Affected by the Lawsuit?
Anyone who purchased shares of the Easterly ROCMuni High Income Municipal Bond Fund during the class period, between May 5, 2023, and June 12, 2025, is eligible to participate in the lawsuit. The class action encompasses claims against the fund itself, its managers, and related entities for alleged misrepresentation and mismanagement that led to a dramatic collapse in asset values.
Those affected by the lawsuit include:
- Investors who purchased shares of the Easterly ROCMuni Fund (tickers: RMHIX, RMHVX, RMJAX) within the class period.
- Individuals and institutions that have suffered substantial financial losses due to the fund’s NAV collapse.
- Shareholders affected by alleged mispricing, illiquidity, and lack of diversification as disclosed in the lawsuit.
- Those seeking to serve as lead plaintiff or participate as class members before the September 22, 2025, legal deadline.
An experienced class action attorney can help determine eligibility, explain the class action process, and ensure all deadlines are met for joining or leading the lawsuit..
Key Legal Issues in Junk Bond and High-Yield Bond Lawsuits
Key legal issues in junk bond and high-yield bond lawsuits revolve around allegations of misrepresentation, flawed asset valuation, inadequate risk disclosures, and a lack of proper diversification. These cases often claim that fund managers provided misleading statements in offering materials, marked assets at artificially inflated prices, and concealed risks tied to illiquid or junk-rated securities, depriving investors of a fair and honest assessment of their investments.
Common Signs of Bond Investment Fraud
- Materially false or misleading statements in offering documents
- Asset prices that do not reflect fair market value
- Systematic inflation of net asset value (NAV) and fund asset valuations
- Excessive concentration in illiquid or junk-rated assets
- Overstated historical performance and risks concealed from investors
- Rapid, unexplained collapses in NAV and share price
High-yield bond lawsuits highlight market vulnerabilities where transparency and pricing are critical, especially when funds rely heavily on risky and illiquid securities. Investment fraud attorneys experienced in securities litigation can identify evidence of wrongdoing, ensure investor rights are protected, and seek financial redress for those harmed by fraudulent bond practices.
Steps Investors Should Take Now
Investors affected by the Easterly ROCMuni High Income Municipal Bond Fund collapse should act quickly to protect their rights and seek compensation. The first step is to review your investment records to confirm purchases of the fund shares during the class period, which spans from July 29, 2022, to June 12, 2025. Next, consider contacting a qualified securities attorney or the law firms representing the class action to discuss your case and eligibility. Depending on individual circumstances, investors can either join the existing class action lawsuit or file an individual claim. It's also crucial to act before the legal deadline for this case: September 22, 2025.
How Levin Law, P.A. Can Help
When investment losses strike, especially in cases like the Easterly ROCMuni High Income Municipal Bond Fund, the impact on your life and financial security can be devastating. At Levin Law, P.A., the focus is on more than just recovering your money; it’s about restoring peace of mind and empowering you to move forward. Working with a dedicated investment fraud attorney means having a compassionate advocate who understands the nuances of securities law, knows how to identify wrongdoing, and has the tenacity to fight for your rights. If you’ve suffered losses in the Easterly ROCMuni Fund or similar investments, contact Levin Law, P.A. today to take your first step toward justice and financial recovery. Your future deserves nothing less than an aggressive, skilled legal team on your side.
