Lead Plaintiff Deadline Approaches in Securities Class Action Against Infinity Q Capital Management, LLC in Connection with the Infinity Q Diversified Alpha Fund (IQDNX, IQDAX)
Boston, Massachusetts--(Newsfile Corp. - April 20, 2021) - Berman Tabacco, a national class action law firm representing investors, is investigating potential violations of the federal securities laws by Infinity Q Capital Management, LLC ("Infinity Q") in connection with the Infinity Q Diversified Alpha Fund (NASDAQ: IQDNX) (NASDAQ: IQDAX) (the "Diversified Alpha Fund").
On February 22, 2021, Bloomberg reported that Infinity Q is shutting down the Diversified Alpha Fund, a $1.8 billion mutual fund, after learning that the Securities and Exchange Commission ("SEC") was "investigating whether the firm's chief investment officer incorrectly valued complex derivatives." According to Bloomberg, "the CIO and majority owner of the firm, has been placed on administrative leave" and the SEC "informed the company that investigators obtained evidence that [the CIO] adjusted models used to price swap contracts held by the Infinity Q Diversified Alpha Fund, likely resulting in incorrect valuations being reported to investors." Further, the "SEC issued an order approving Infinity Q's request to temporarily halt redemptions in the fund, which the firm plans to liquidate after determining the proper value for swap contracts that comprise about 18% of its assets."
On February 26, 2021, a securities class action was filed on behalf of "all persons and entities who purchased the Infinity Q Diversified Alpha Fund Investor Class shares (IQDAX) or Institutional Class shares (IQDNX) between December 21, 2018 and February 22, 2021" in United States District Court for the Eastern District of New York.
According to the class action complaint, "Defendants made false and/or misleading statements and/or failed to disclose that: (1) Infinity Q's Chief Investment Officer made adjustments to certain parameters within the third-party pricing model that affected the valuation of the swaps held by the Fund; (2) consequently, Infinity Q would not be able to calculate NAV correctly; (3) as a result, the previously reported NAVs were unreliable; (4) because of the foregoing, the Fund would halt redemptions and liquidate its assets; and (5) as a result, the Prospectuses were materially false and/or misleading and failed to state information required to be stated therein."
On April 20, 2021, The Wall Street Journal published an article titled "Behind the Mysterious Demise of a $1.7 Billion Mutual Fund." The article noted that the "Federal Bureau of Investigation and prosecutors at the Manhattan U.S. attorney's office are also investigating."
If you wish to serve as Lead Plaintiff for the Class, you must file a motion to serve as Lead Plaintiff with the Court no later than April 27, 2021. Any member of the proposed Class may move the Court to serve as Lead Plaintiff through counsel of their choice, or choose to do nothing and remain a member of the proposed Class. If you would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: https://bit.ly/3syXa6t.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
This notice may constitute attorney advertising.
Jay Eng, Esq.
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