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Easterly Fund Investors May Be Eligible to Recover Their Investment Losses

If you have suffered significant investment losses with the Easterly ROCMuni High Income Municipal Bond Fund, our investment loss lawyers may be able to help. We are actively investigating claims against Osaic Wealth and Stifel Nicolaus & Co. involving allegations that these firms misled investors into high-risk investments and failed to protect their clients when things started to go wrong.

What Went Wrong with the Easterly ROCMuni High Income Municipal Bond Fund?

The Easterly ROCMuni High Income Municipal Bond Fund was marketed as a relatively low-risk, tax-exempt municipal bond investment for income-focused investors and retirees. However, portfolio managers engaged in aggressive strategies that exposed shareholders to severe, unexpected losses:

  • Lower-Rated “Junk” Municipal Bonds: Instead of sticking to stable, investment-grade municipal bonds, the fund invested heavily in lower-rated bonds carrying significantly higher volatility and lower liquidity.
  • Aggressive Financial Leverage: The fund used leverage to increase buying power, which magnified losses when asset values began to fall.
  • Sudden Value Plunge & Illiquidity: When fund managers marked down illiquid holdings to reflect true fair value, the fund’s Net Asset Value (NAV) plummeted from more than $6.00 per share to less than $3.00 per share, while assets under management (AUM) collapsed from over $230 million to less than $17 million.

Because these losses stemmed from excessive risk-taking and poor management rather than normal market fluctuations, investors stand virtually no chance of recovering their capital through market forces alone.

Issues with the Easterly Fund that Made It Unsuitable for Most Retail Investors

Our investigations have revealed that Osaic Wealth and Stifel Nicolaus & Co. may be liable for many investors’ Easterly Fund losses. This is due to these brokerage firms’ apparent failure to inform investors of the risks associated with investing in the fund. For example:

  • Investment in Lower-Grade Municipal Bonds – As discussed above, while municipal bond funds traditionally invest in highly rated bonds to mitigate investors’ risk, the Easterly Fund invested in municipal bonds with “junk” ratings.
  • Using Leverage that Increased Risk – It appears that the Easterly Fund also heavily relied on leverage in order to increase its buying power. However, this high-risk strategy ended up magnifying the fund’s losses.
  • Engaging in Faulty (and Potentially Fraudulent) Pricing Practices – The Easterly Fund’s faulty (and potentially fraudulent) pricing practices appear to be to blame for the sudden markdown that ultimately triggered the fund’s collapse.

These are risks that are not suitable for most retail investors—and certainly not for investors who are focused on maintaining a steady income in retirement. As a result, our investigations are focused on proving allegations that Osaic Wealth and Stifel Nicolaus & Co. either negligently or intentionally withheld information about these risks from their clients.

Potential Claims Against Brokerage Firms that Sold the Easterly Fund to Unsuspecting Clients

When unsuspecting investors suffer losses due to their brokerage firms’ negligence or fraud, they have clear grounds to pursue claims in FINRA arbitration, which is a unique forum that exists specifically to help defrauded investors recover their losses as efficiently as possible.

Some examples of potential grounds to pursue claims in FINRA arbitration include:

  • Inadequate Due Diligence – Brokers who recommend investments without taking the time to understand the risks involved may be held liable for failing to conduct adequate due diligence.
  • Misrepresentations and Omissions – Brokers who misrepresent or omit material risk-related information when providing investment recommendations can be held liable for fraud.
  • Unsuitable Investment Advice – Providing unsuitable investment advice to generate fees and commissions is a clear form of investment fraud.

Ultimately, whether a broker makes a mistake or attempts to take advantage of his or her clients, the broker can—and should—be held accountable. Keep reading to learn about the steps that Easterly Fund investors can take to seek accountability through the FINRA arbitration process.

5 Steps to Take if You Lost Money Investing in the Easterly Fund

Did you lose money investing in the Easterly Fund? If so, we strongly encourage you to take the following steps as soon as possible:

1. Collect Your Investment Records

You should collect your investment records related to the Easterly Fund dating as far back as possible. With that said, if you aren’t sure how to access these records, our lawyers will be able to help.

2. Collect Any Communications from Your Brokerage Firm

Along with collecting your investment records, you should also collect any communications you still have from your brokerage firm. This includes letters, emails, and other written or recorded communications.

3. Learn More About Your Legal Rights as an Investor

As an Easterly Fund investor, you have clear legal rights. We encourage you to read the Additional Resources linked below for more information.

4. Learn More About FINRA Arbitration

We also encourage you to learn more about the FINRA arbitration process. This article provides an overview of what you can expect if you hire a lawyer to represent you.

5. Schedule a Free Consultation

Hiring a lawyer to represent you starts with scheduling a free consultation. Regardless of what records and communications you are able to collect, we strongly encourage you to contact us right away.

Latest Updates for Easterly ROCMuni High Income Municipal Bond Fund Investors

As the Easterly ROCMuni High Income Municipal Bond Fund saga continues, we are keeping track of what defrauded investors need to know. Here are the latest updates on where things stand:

April 2026

The plaintiffs in the class action lawsuit involving the Easterly Fund have filed an amended complaint, and the Easterly Fund’s defense lawyers have responded with a motion to dismiss. The Second Amended Complaint contains additional allegations in support of the plaintiffs’ claims for damages. These include allegations related to:

  • The Easterly Fund’s investment disclosures
  • The Easterly Fund’s investments in high-risk bonds (or “junk bonds”) and illiquid securities
  • The Easterly Fund’s valuation methodologies

If the allegations against the Easterly Fund are true—which currently appears to be the case—investors have strong claims for fraud. We are pursuing similar allegations in FINRA arbitration claims against individual investors’ brokerage firms and advisors. Contact us to learn more.

January 2026

The class action lawsuit against the Easterly Fund is continuing to move forward. The plaintiffs in the litigation have filed a motion seeking permission to obtain records from brokerage firms, investment banks, and individual brokers who recommended the Easterly Fund to their clients. If you purchased the Easterly Fund through any of the following firms, your broker may be liable for failing to disclose the fund’s true risk profile:

Brokerage Firms Under Investigation

  • Charles Schwab & Co., Inc.
  • Janney Montgomery Scott LLC
  • LPL Financial LLC
  • Merrill Lynch, Pierce, Fenner & Smith Inc.
  • National Financial Services, LLC
  • Oppenheimer & Co. Inc.
  • Osaic Wealth, Inc.
  • Raymond James Financial Services, Inc.
  • Raymond James & Associates, Inc.
  • RBC Capital Markets, LLC
  • Robert W. Baird & Co.
  • Stifel Nicolaus & Company

If you invested in the Easterly Fund through any of these entities, you may be eligible to file a claim and seek to recover your investment losses. Our law firm is handling FINRA arbitration claims against these entities on behalf of investors nationwide.

December 2025

The Easterly ROCMuni High Income Municipal Bond Fund disclosed that its Board of Trustees approved a liquidation plan in December 2025. This means that the Easterly Fund is taking formal steps to wind down its operations and dispose of its remaining assets. According to the disclosure, the Easterly Fund is planning to sell the majority of its assets to pay down its debts and then make cash distributions to its shareholders.

However, the disclosure also notes that the Easterly Fund holds certain illiquid assets and that it is facing a class action lawsuit. As a result, it cannot dispose of all its assets. Illiquid assets can take time to sell (if they can be sold at all), and when companies are facing litigation, they are generally prohibited from engaging in transactions that unduly deprive plaintiffs of a potential financial recovery.

In other words, at this stage, there still remains a lot to be determined regarding what will happen to the Easterly Fund’s assets — and, in turn, what will happen to its investors. If you need more information, we strongly encourage you to contact us for a free and confidential consultation.

Additional Resources for Easterly Fund Investors

We are committed to helping defrauded investors recover their losses, and right now we are focused specifically on helping Easterly ROCMuni High Income Municipal Bond Fund investors. If you need to know more about what went wrong, why it went wrong, and who is responsible, we encourage you to read:

Lost Money in the Easterly ROCMuni Fund? Recover Your Investment.

We handle most investment fraud and recovery cases on a contingency fee basis — meaning you pay no attorney’s fees unless we recover money for you. To schedule a free, no-obligation consultation to review your specific claim with an experienced investment loss lawyer at Zamansky LLC, please call 212-742-1414 or contact us online now.

 

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