SAN FRANCISCO, Jan. 09, 2017 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP has filed an amended complaint against BlackRock Inc., iShares Trust and their affiliates on behalf of investors of BlackRock iShares Exchange Traded Funds (“ETFs”) who suffered losses due to price discrepancies that arose during the August 24, 2015 flash crash.
If you purchased or otherwise acquired iShares ETFs, between June 16, 2013 and August 24, 2015 (the “Class Period”) and sold them on August 24, 2015 pursuant to a market or stop-loss order, and were damaged thereby, you may contact Hagens Berman Sobol Shapiro LLP for more information about this lawsuit or a copy of the complaint by visiting:
https://www.hbsslaw.com/cases/blackrock-ishares-etf-august-24-2015-flash-crash-litigation
or email the firm at iShares@hbsslaw.com.
The complaint alleges that, while BlackRock represented to investors that ETFs “offer the same” trading liquidity as stocks, BlackRock knew from prior experience that ETF trading liquidity presented additional and different material risks from that of stock in companies or mutual funds. In particular, BlackRock reported to regulators that in September 2008 and 2010, when prices fell rapidly, ETF market and stop-loss orders actually exacerbated ETF price declines disproportionately to the ETF’s underlying assets or NAV. As a result, many investors, who sold their ETF shares pursuant to market or stop-loss orders, not only sold at prices far below the underlying NAV of the ETF portfolio. Investors and their advisors remained ignorant of these unique risks of using market or stop-loss orders with iShares ETFs.
Then, again on Monday August 24, 2015, BlackRock ETF investors who had placed market or protective stop-loss orders prior to or at the opening of the markets were slammed with disproportionate losses when 19.2% of all ETFs experienced price declines of more than 20% compared to only 4.7% declines in the underlying corporate securities.
Whistleblowers: Persons with non-public information regarding the underlying structural illiquidity of ETFs, and BlackRock iShares ETFs in particular, should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email at iShares@hbsslaw.com.
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