National investment loss lawyers KlaymanToskes is investigating brokerage firms and financial advisors who unsuitably recommended investments in the Easterly ROCMuni High Income Municipal Bond Fund (NASDAQ: RMJAX, RMHIX, RMHVX) to their customers. Our law firm believes that many investors may have been misled about the risks and liquidity issues associated with this high-yield municipal bond fund.
In June 2025, the Easterly ROCMuni Fund, f/k/a Principal Street High Income Municipal Fund, suffered a catastrophic collapse, losing nearly 50% of its value in a single day, with estimates of losses ranging from $50 million to $100 million. The Fund’s total net assets dropped from over $230 million as of March 31, 2025, to under $17 million by July 8, 2025, following a fire sale of assets that triggered a steep decline in NAV—from $6.36 to below $3.00 per share in less than three weeks.
A class action lawsuit has already been filed, however, investors should know that class-actions may take many years to resolve, and that payouts are generally heavily undervalued. KlaymanToskes previously conducted a detailed study of securities arbitration versus class action and concluded that Financial Industry Regulatory Authority (“FINRA”) arbitration claims traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit.
Accordingly, investors should consider all their legal options, including filing a securities arbitration claim with FINRA, against the brokerage firm who recommended the purchase of Easterly ROCMuni. A FINRA arbitration claim may result in a greater and additional recovery.
If you suffered losses in the Easterly ROCMuni High Income Municipal Bond Fund, or any other investments due to unsuitable recommendations by your brokerage firm or financial advisor, contact securities attorney Steven D. Toskes to discuss your potential recovery options at (888) 997-9956 or investigations@klaymantoskes.com for a free and confidential consultation. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
The Easterly ROCMuni High Income Municipal Bond Fund, formerly the Principal Street High Income Municipal Fund, is a high-yield municipal bond fund marketed to investors seeking tax-advantaged income. However, the Fund reportedly concentrated over 50% of its assets in private, illiquid securities, including junk-rated bonds (D to BB+) and illiquid private placements under Rule 144A, making it a highly risky and speculative investment that was unsuitable for many investors, particularly those with conservative risk profiles. These risk factors contributed to its extreme volatility and ultimate collapse in June 2025. The fund’s managers initiated a mass liquidation of assets in mid-June, which triggered a rare “fire sale” that caused share prices to plummet, leaving many investors blindsided by the losses.
The Easterly ROCMuni High Income Municipal Bond Fund is considered a high-risk investment. Financial professionals and their firms have a fiduciary duty to recommend suitable investments that are in their customer’s best interest.
The brokers and financial advisors responsible for selling Easterly ROCMuni High Income Municipal Bond Fund may be held responsible for any financial losses sustained by investors. Brokerage firms and financial advisors must consider their client’s risk tolerance prior to making recommendations, and cannot overconcentrate their customers’ accounts in any one investment product or market sector.
KlaymanToskes is a leading national securities fraud law firm that represents the interests of investors throughout the world who have suffered losses due to broker misconduct, investment fraud, and securities violations.
The article linked below contains important information relating to KlaymanToskes’ investigations of Easterly ROCMuni High Income Municipal Bond Fund:
If you suffered losses in the Easterly ROCMuni High Income Municipal Bond Fund, or any other investments, contact securities attorney Steven D. Toskes to discuss your recovery options at (888) 997-9956 or fill out a short contact form for a free and confidential consultation.
The firm has helped recover over $600 million for investors (exclusive of attorneys fees and costs), and can help you determine if your loss is due to financial advisor misconduct, unsuitable investment advice, and/or other securities violations.
Potential conflicts of interest may arise when issuers incentivize brokers/investment advisors with substantial commissions to promote their financial products. A problem often associated with certain investment recommendations, is the high sales commissions brokers typically earn for selling investments to their customers, which can be as high as 15%. A representative that recommends investments for the purpose of being compensated through increased commissions, and enriches themselves rather than benefiting the client, is violating securities laws.
To recover investment losses, you do not go through the traditional court system with a lawsuit. The only remedy is through a FINRA arbitration, a specific process designed for these types of disputes. This process involves presenting your case to a panel set by the Financial Industry Regulatory Authority (FINRA), not a courtroom. This approach is streamlined and focused on investment disputes, making it a suitable and effective way for investors to seek compensation for losses caused by financial advisors or brokerage firms.
FINRA (the Financial Industry Regulatory Authority) is a self-regulatory organization that oversees brokers and brokerages. In the event of a dispute between an investor and their financial advisor, investors can choose to file a FINRA arbitration claim. FINRA is overseen by the Securities and Exchange Commission (“SEC”).
The arbitration process is designed to be much faster than the court system and allows both parties to present their case before a panel of arbitrators. The arbitrators will then decide how to resolve the dispute, including ordering the advisor to pay damages for any losses suffered by the investor.
If you suffered losses in the Easterly ROCMuni High Income Municipal Bond Fund or other investment losses, you are encouraged to contact attorney Steven D. Toskes, at 888-997-9956 or by email at investigations@klaymantoskes.com to discuss recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
As an investor, there are signs that you should look out for if you believe you have a claim against your broker/advisor for unsuitable investment recommendations in Easterly ROCMuni High Income Municipal Bond Fund. These signs could potentially indicate misconduct, negligence, or investment fraud. Investors are encouraged to contact our firm immediately if you have experienced any of the following:
Some investors have close relationships with their brokers due to the time and trust built over the course of their investment relationship. However, it is crucial to remember that financial decisions should be based on careful analysis and due diligence rather than solely relying on personal relationships.
Engaging the services of an experienced securities attorney to evaluate your specific circumstances is strongly advised. At KlaymanToskes, our team of experienced securities attorneys has a deep understanding of this complex area of law, allowing us to provide invaluable insight and tailored guidance that directly addresses your individual needs.
If you purchased unsuitable Easterly ROCMuni High Income Municipal Bond Fund investments, or any other unsuitable investments through your financial advisor/brokerage firm, and suffered significant losses, contact KlaymanToskes at 888-997-9956 or fill out a short contact form for a free and confidential consultation.