Haselkorn & Thibaut is currently representing Easterly ROCMuni investors and leading the investigation into these significant losses.
If you invested in the Easterly ROCMuni High Income Municipal Bond Fund (RMJAX), you experienced a substantial decline in your investment value during June 2025. The fund’s performance during this period resulted in significant losses that affected many investors who had chosen what they believed to be a municipal bond investment.
As the law firm currently representing Easterly ROCMuni investors, Haselkorn & Thibaut is actively investigating the circumstances surrounding these losses and pursuing legal remedies for affected investors. Our direct involvement in this case gives us unique insight into what happened and what legal options may be available to investors.
The experience with the Easterly ROCMuni fund illustrates the importance of understanding that municipal bond funds can vary significantly in their risk profiles, and that investments marketed as “income-generating” may carry risks that some investors and their advisors may not have fully anticipated.
The Impact on Individual Investors
Table of Contents
When we discuss the Easterly ROCMuni losses, we’re addressing the real financial impact on individual investors—many of whom are now our clients. These include retirees who invested in what they understood to be a municipal bond fund, working families who invested for their children’s education, and individuals who followed their broker’s recommendation based on their stated investment objectives.
Through our representation of these investors, we have documented the following performance data:
- Net assets declined from $232 million to $25.1 million in less than three months
- Share prices fell from $6.36 to $3.09 between June 1-23, 2025
- Individual investors experienced losses estimated between $50 million and $100 million collectively
- The fund’s year-to-date performance showed a -57.34% loss
For many of our clients, these figures represented years of savings, retirement planning, and financial goals that were significantly impacted by the fund’s performance.
Understanding What the Easterly ROCMuni Fund (RMHVX) Really Was
Many investors who purchased shares in the Easterly ROCMuni High Yield Municipal Bond Fund (available under ticker symbols RMJAX, RHHIX, and RMHVX) believed they were investing in a traditional municipal bond fund. Municipal bonds have long been considered among the safer investment options, typically used by cities and states to fund public projects like schools, roads, and hospitals.
However, our investigation has revealed that the Easterly ROCMuni fund differed significantly from traditional municipal bond investments. The fund employed a higher-risk, higher-yield strategy that concentrated in more speculative areas of the municipal bond market.
The Investment Characteristics That Created Risk
Through our investigation and representation of affected investors, we have identified what made this fund particularly challenging. Over half of the fund’s portfolio consisted of Rule 144A private placements—securities that trade in restricted markets with limited liquidity. These securities can be more difficult to sell during periods of market stress.
Additionally, approximately 84% of the fund’s holdings were rated D to BB+—credit ratings that place them in the below-investment-grade category. These are bonds issued by entities with higher credit risk and potential for greater price volatility.
Our analysis shows that many investors who expected a traditional municipal bond fund may not have anticipated that nearly nine out of ten investments would be in the below-investment-grade category. The implications of this concentration may not have been clearly communicated to all investors.
The Timeline of Disaster: How Everything Fell Apart
The Calm Before the Storm (March 2025)
At the end of March 2025, everything seemed relatively stable. The fund reported net assets of $232 million, and investors who checked their statements likely saw nothing particularly alarming. Share prices were holding steady, and the fund appeared to be delivering on its promise of higher yields.
But our investigation has revealed that beneath the surface, warning signs were already emerging. The fund’s heavy concentration in illiquid, low-rated securities made it particularly vulnerable to market stress. When municipal bond markets began showing signs of strain, the Easterly ROCMuni fund was positioned like a house of cards.
The Beginning of the End (Early June 2025)
The first weeks of June 2025 marked the beginning of what would become a financial disaster. Market conditions began deteriorating, and investors started becoming nervous about riskier investments. For funds like Easterly ROCMuni, which had bet heavily on junk bonds and illiquid securities, these changing conditions created a perfect storm.
As redemption requests began increasing, the fund faced a cruel reality: it simply couldn’t sell its holdings quickly enough to meet investor demands. The Rule 144A private placements that made up over half the portfolio weren’t designed for rapid liquidation. They were meant to be held, not sold in a hurry.
Market Conditions and Liquidity Challenges (June 13, 2025)
On or around June 13, 2025, the fund’s management made the decision to liquidate a significant portion of its illiquid holdings. Faced with redemption pressures and challenges in selling their preferred holdings at desired prices, the ROCMuni fund (RMHVX) initiated a substantial liquidation of assets.
This type of forced selling occurs when a fund must sell investments to meet redemption demands, sometimes resulting in sales at prices below the securities’ stated values. The fund began selling its holdings to raise cash to meet investor redemption requests.
The Rapid Decline (June 13-23, 2025)
Following the fund’s liquidation activities, the fund’s Net Asset Value (NAV) declined from $6.36 to $3.09 per share in ten days—a decrease of more than 50% in less than two weeks.
For our clients and other investors, this represented a significant decline in their investment value in a short period. The fund’s net assets decreased from $232 million to $25.1 million by June 23, 2025, reflecting the combined impact of asset sales and investor redemptions.
Understanding the Factors That Contributed to the Decline
Our investigation into the Easterly ROCMuni situation has identified several important factors regarding fund management, risk disclosure, and investment recommendations that contributed to these losses:
The Liquidity Structure Considerations
The fund’s structure created a challenging dynamic. The fund offered daily liquidity to investors—meaning shareholders could redeem their shares on any business day—while investing in securities that were more difficult to sell quickly.
This difference between daily liquidity offerings and less liquid investments can create challenges during periods when multiple investors seek to redeem their shares simultaneously, potentially requiring the fund to sell holdings at unfavorable prices.
Credit Quality and Risk Profile
While the fund was described as a “municipal bond fund,” our analysis shows its actual composition differed significantly from traditional municipal bond investments. With 84% of holdings rated D to BB+, the fund concentrated heavily in below-investment-grade securities, which carry higher credit risk than typical municipal bonds.
Municipal bonds issued by financially stable cities and states typically carry higher credit ratings (A or above). The fund’s concentration in lower-rated securities represented a different risk profile that may not have been clearly understood by all investors.
Concentration in Specialized Securities
The fund’s concentration in Rule 144A private placements created additional considerations that some investors may not have fully understood. These securities trade in restricted markets with limited participant pools, making them more challenging to sell during periods of market stress.
A traditional municipal bond fund typically maintains a lower percentage of assets in such specialized securities. This concentration made the fund more vulnerable to the type of market conditions that occurred in June 2025.
Investment Professional Responsibilities and Considerations
Through our representation of Easterly ROCMuni investors, we have identified important questions about investment professional obligations and the information that was provided to investors.
Investment Suitability Considerations
Securities regulations require investment professionals to recommend only investments that are suitable for their clients’ individual circumstances. This analysis should include factors such as:
- Age and retirement timeline
- Risk tolerance and investment experience
- Overall financial situation and investment objectives
- Liquidity needs and time horizon
For some of our clients, a fund with 84% below-investment-grade bonds and over 50% illiquid securities may not have aligned with their stated investment objectives or risk tolerance.
Risk Disclosure Responsibilities
Investment professionals have obligations to clearly explain the risks associated with investment recommendations. This responsibility extends beyond providing written materials to include meaningful discussions about potential risks and their implications.
Some of our clients report that they may not have received adequate explanation about the fund’s concentration in below-investment-grade bonds or illiquid securities, or about the potential for rapid value changes during market stress.
Due Diligence Standards
Investment professionals and their firms have responsibilities to conduct appropriate due diligence on the investments they recommend. This should include analysis of fund composition, risk factors, and potential performance scenarios.
The fund’s characteristics—including its concentration in lower-rated, less liquid securities—were important considerations that should have been part of the recommendation process.
Your Rights as an Investor
If you suffered losses in the Easterly ROCMuni fund, you’re not powerless. As the law firm currently investigating and pursuing these claims, we understand that securities laws provide important protections for investors, and there are legal remedies available depending on your specific circumstances.
Securities regulations establish clear standards for investment recommendations. Brokers must have reasonable grounds for believing that their recommendations are suitable for their clients’ individual situations. If your broker recommended the Easterly ROCMuni fund without properly considering your risk tolerance, investment objectives, or financial situation, this may constitute a violation of suitability requirements.
You have the right to receive clear, accurate information about material risks associated with your investments. If your broker failed to explain the fund’s concentration in junk bonds or illiquid securities, or if they misrepresented the fund as a conservative municipal bond investment, this may constitute a failure to disclose material information.
The Right to Competent Advice
Investment professionals have a duty to understand the products they recommend. If your broker failed to conduct adequate due diligence on the Easterly ROCMuni fund or didn’t understand the risks they were recommending to you, this may constitute professional negligence.
The Right to Proper Supervision
Brokerage firms have supervisory responsibilities over their employees’ recommendations. If a firm failed to properly supervise their brokers or didn’t have adequate systems in place to identify unsuitable recommendations, the firm itself may be liable for client losses.
The Importance of Acting Quickly
As the law firm currently pursuing Easterly ROCMuni claims, we cannot emphasize enough that time is of the essence. Securities claims are subject to specific time limitations, and waiting too long can result in losing your right to pursue recovery.
Statute of Limitations Concerns
Most securities claims must be filed within a specific timeframe after the loss occurs or after you reasonably should have discovered the basis for your claim. These time limits are strictly enforced, and missing a deadline can bar your claim entirely, regardless of its merits.
Evidence Preservation
As time passes, important evidence may be lost or destroyed. Preserving documentation now is crucial for protecting your potential rights. This includes account statements, transaction records, communication with your broker, and any marketing materials you received about the fund.
Witness Availability
Memories fade, and people move on to new jobs. The sooner you begin exploring your legal options, the more likely it is that important witnesses will be available and able to provide relevant testimony about what happened.
What to Do Right Now
If you suffered losses in the Easterly ROCMuni fund, here are the immediate steps you should take:
Gather Your Documentation
Collect all records related to your investment, including:
- Account statements showing your purchases and losses
- Transaction confirmations and trade records
- Any written communications with your broker
- Marketing materials or presentations about the fund
- Notes from conversations with your investment advisor
Don’t Accept Responsibility
It’s natural to blame yourself when investments go wrong, but the Easterly ROCMuni collapse wasn’t a normal market loss. This was a preventable disaster that resulted from poor fund management and potentially inadequate broker oversight.
Understand Your Timeline
Securities claims are subject to strict time limits. Don’t assume you have unlimited time to decide whether to pursue legal action. The sooner you consult with an attorney, the better protected your rights will be.
Seek Professional Legal Advice
Securities law is complex, and every situation is unique. An experienced securities attorney can evaluate your specific circumstances and help you understand your options for potential recovery.
How Haselkorn & Thibaut Can Help – We’re Already Working on Your Case
At Haselkorn & Thibaut, we are currently representing Easterly ROCMuni investors and leading the investigation into these significant losses. We understand that these losses represent more than just financial figures—they represent broken trust, derailed retirement plans, and the very real impact of investment professional failures on ordinary people’s lives.
Our Direct Experience With the Easterly ROCMuni Case
We are actively representing investors who suffered losses in the Easterly ROCMuni fund. Our direct involvement in this case gives us unique insight into what happened, what went wrong, and what legal remedies may be available. We have been investigating the circumstances surrounding the fund’s collapse, analyzing the actions of investment professionals who recommended it, and building cases for our clients.
Leading the Investigation
As the law firm at the forefront of investigating the Easterly ROCMuni losses, we have been working to uncover the full scope of what happened. This includes examining:
- The fund’s investment practices and risk management
- The adequacy of disclosures made to investors
- The suitability of recommendations made by investment professionals
- The supervision and due diligence conducted by brokerage firms
Our Experience With Securities Cases
We’ve spent years helping investors recover losses from unsuitable recommendations, inadequate disclosure, and broker misconduct. We understand the complex regulations that govern investment professionals, and we know how to build strong cases for our clients.
We believe that every investor deserves honest, straightforward advice about their legal options. When you contact us about your Easterly ROCMuni losses, you’ll speak with experienced attorneys who are already working on this specific case and who understand the unique circumstances involved.
No Upfront Costs
We understand that suffering investment losses can create financial strain. That’s why we work on a contingency basis—you don’t pay attorney fees unless we successfully recover money for you. This means you can pursue your legal rights without worrying about additional financial risk.
Proven Track Record
Our firm has successfully recovered millions of dollars for investors who suffered losses due to broker misconduct, unsuitable recommendations, and inadequate disclosure. We have the experience and resources necessary to take on major brokerage firms and fight for your rights.
The Time to Act Is Now
The Easterly ROCMuni fund collapse was a preventable disaster that should never have happened. As the law firm currently representing affected investors and investigating these losses, we know that if you suffered losses, you may h
