In June 2025, investors in the Easterly ROCMuni High Income Municipal Bond Fund (tickers RMJAX, RHHIX, RMHVX) witnessed one of the most devastating municipal bond fund collapses in recent history. What was marketed as a safe, tax-advantaged income investment instead delivered catastrophic losses, with the fund’s Net Asset Value (NAV) plummeting from $6.36 to $3.09 in just 10 days—wiping out an estimated $50 to $100 million in investor wealth.
This shocking collapse has left many retirees, conservative investors, and income-focused clients questioning whether they were adequately informed about the true risks involved. More importantly, they’re asking whether they may be entitled to recover their losses through legal action.
The ROCMuni Collapse: What Really Happened?
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The ROCMuni Fund was promoted as a straightforward way to generate federally tax-exempt income through municipal bonds. However, beneath this conservative veneer lay a complex web of risks that many retail investors either weren’t warned about or didn’t fully grasp.
The Hidden Risk Factors Behind the Collapse
Dangerous Concentration in Illiquid Securities
More than half of ROCMuni’s assets were tied up in Rule 144A private placements—specialized bonds exempt from SEC registration that typically trade only among qualified institutional buyers. While these securities can offer attractive yields, they become nearly impossible to sell during market stress, creating severe liquidity constraints that can trigger devastating price drops.
Overwhelming Junk Bond Exposure
A staggering 84% of the portfolio consisted of below-investment-grade municipal bonds rated D to BB+. These high-yield bonds carry significantly greater default risk and exhibit extreme volatility during credit market disruptions—characteristics fundamentally at odds with most investors’ expectations of municipal bond investing.
Amplified Risk Through Leverage
The fund employed leverage strategies to boost returns, which inevitably amplified losses when market conditions turned adverse. As interest rates shifted and municipal bond prices declined, the fund’s leveraged structure transformed manageable losses into devastating portfolio destruction.
Critical Mismatch with Investor Expectations
Most investors approached ROCMuni seeking stable, tax-free income and believed they were purchasing a conservative municipal bond product. In reality, the fund’s holdings more closely resembled a high-risk, speculative bond portfolio—a dangerous misalignment that many investors discovered too late.
June 2025: When the Perfect Storm Hit
During June 2025, municipal bond market liquidity dried up dramatically. Demand for high-yield and illiquid municipal securities vanished almost overnight. ROCMuni’s heavy concentration in Rule 144A securities and junk-rated bonds meant the fund couldn’t liquidate holdings without accepting massive price concessions.
The fund’s leverage amplified every negative development. Losses accumulated rapidly, and within less than two weeks, the NAV had been cut in half. By June 23, 2025, total net assets had collapsed from $232 million to a mere $25.1 million—a destruction of wealth that left countless investors reeling.
Were Investors Adequately Protected?
Haselkorn & Thibaut is conducting a comprehensive investigation into whether brokerage firms and financial advisors who recommended ROCMuni may have violated their fiduciary duties by:
Failing to Disclose Critical Risks
Many investors report receiving inadequate warnings about the fund’s use of leverage, illiquid securities, and speculative municipal bond exposure—risks that were fundamental to understanding the investment’s true nature.
Making Unsuitable Investment Recommendations
Evidence suggests the fund was frequently sold to retirees and conservative investors without proper consideration of their risk tolerance or investment objectives.
Creating Dangerous Portfolio Concentrations
Some advisors allocated disproportionate amounts of clients’ assets to high-risk municipal bond funds, creating excessive exposure to a single volatile investment strategy.
Employing Misleading Marketing Practices
Promotional materials appear to have emphasized yield and tax benefits while systematically downplaying or obscuring the potential for substantial losses.
Numerous investors report being told that ROCMuni was “safe,” “conservative,” or presented “low risk”—descriptions that bore no resemblance to the fund’s actual composition and risk profile.
Legal Recovery Options for ROCMuni Investors
Investors who suffered losses in the Easterly ROCMuni High Income Municipal Bond Fund may be able to recover damages through FINRA arbitration. This established legal process enables investors to pursue claims against their brokerage firms for unsuitable recommendations, misrepresentation, or failure to provide adequate supervision.
Why FINRA Arbitration Offers Advantages
- Efficiency: Faster and more cost-effective than traditional court litigation
- Accessibility: Claims can be pursued even if you no longer hold the investment
- Expertise: Arbitrators possess specialized knowledge of securities disputes
- Recovery Potential: Awards can include full compensatory damages for documented losses
Immediate Steps to Protect Your Rights
If you suffered ROCMuni losses, time is critical. Take these essential steps now to preserve your legal options:
Document Everything
Collect all relevant materials including account statements, trade confirmations, marketing brochures, and any written or email communication with your financial advisor.
Avoid Premature Settlements
Don’t accept buyback offers or sign settlement agreements without first obtaining independent legal review. These early offers are often inadequate and may waive important rights.
Seek Professional Legal Guidance
Consult with an experienced securities attorney who can provide a comprehensive evaluation of your recovery options at no initial cost.
Why Choose Haselkorn & Thibaut?
Proven Track Record
With over 50 years of combined experience exclusively representing investors, our team has successfully recovered millions of dollars for victims of unsuitable investments and misrepresentation.
Risk-Free Representation
We work on a contingency fee basis, meaning you pay no legal fees unless we achieve a successful recovery on your behalf.
National Reach
Our offices in Florida, New York, Arizona, Texas, and North Carolina enable us to represent investors throughout the United States.
Time Is Running Out
Securities claims are governed by strict statutes of limitations. Delaying action can permanently eliminate your ability to recover investment losses. If you invested in the Easterly ROCMuni High Income Municipal Bond Fund, immediate action is essential.
Get Your Free Case Evaluation Today
Haselkorn & Thibaut provides free, confidential consultations for investors nationwide. If you purchased ROCMuni through your financial advisor or brokerage firm, you may have a viable claim for recovery. Contact us today to learn about your legal options and take the first step toward getting your money back.
