BlackRock iShares ETF August 24, 2015 Flash Crash Litigation

DEFENDANT NAME: ISHARES TRUST, BLACKROCK, INC., BLACKROCK FUND ADVISORS and BLACKROCK INVESTMENTS, LLC
STOCK SYMBOL: NYSE Arca: DGRO, HDV, IYY, IFEU, REET, IFGL, IDV, JKD, JKE, JKF, JKG, JKH, JKI, JKJ, JKK, JKL, REM, DSI, KLD, IFNA, FTY, REZ, DVY, IYT, ITA, IYM, IAI, IYK, IYC, IYE, IYG, IYF, IYH, IHF, ITB, IYJ, IAK, IHI, IEO, IEZ, IHE, IYR, IAT, IYW, IYZ, IDU, AIA, IVV, IJH, IJR, ITOT, IUSG, IUSV, EMIF, IEV, IOO, ICLN, RXI, KXI, IXC, IXG, IXJ, EXI, IGF, MXI, IXN, IXP, WOOD, JXI, IWC, IBB, IWB, IWF, IWD, IWM, IWO, IWN, IWV, IWR, IWP, IWS, IWL, IWY, IWX, OEF, IVW, IVE, IJK, IJJ, IJT, IJS, PFF
CASE NUMBER: CGC-16-552567
COURT: Superior Court State of California, County of San Francisco
PRACTICE AREA: Investor Fraud
STATUS: Active
CLASS PERIOD: June 16, 2013 - August 24, 2015
LEAD PLAINTIFF DEADLINE:
DATE FILED: 06/16/16
COURT LOCATION:

Tickers: VIG, SDY, DGRO, HDV, IYY, IFEU, REET, IFGL, IDV, JKD, JKE, JKF, JKG, JKH, JKI, JKJ, JKK, JKL, REM, DSI, KLD, IFNA, FTY, REZ, IYT, ITA, IYM, IAI, IYK, IYC, IYE, IYG, IYF, IYH, IHF, ITB, IYJ, IAK, IHI, IEO, IEZ, IHE, IYR, IAT, IYW, IYZ, IDU, AIA, IJH, ITOT, IUSG, IUSV, EMIF, IEV, IOO, ICLN, RXI, KXI, IXC, IXG, IXJ, EXI, IGF, MXI, IXN, IXP, WOOD, JXI, IWC, IBB, IWB, IWF, IWD, IWM, IWO, IWN, IWV, IWR, IWP, IWS, IWL, IWY, IWX, OEF, IVW, IVE, IJK, IJJ, IJT, IJS, PFF, VTI, VEA, VTV, VIG, VUG, VGK, EFA, SPY, VOO, GLD, AGG, VWO, QQQ, VNQ, VEA, LQD

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.

The potential class includes those who purchased or otherwise acquired iShares ETFs between June 16, 2013 and August 24, 2015 (the “Class Period”) and sold their iShares ETFs on August 24, 2015 pursuant to a market or stop-loss order, and were damaged thereby.  For more information, fill out our contact form to the right or contact our legal team at:

iShares@hbsslaw.com

The complaint alleges that Defendant BlackRock and its affiliates represented ETFs “offer the same” trading liquidity as stocks while BlackRock knew from prior experience that ETF trading liquidity presented additional and different material risks from that of traditional stocks 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 exacerbated ETF price declines disproportionately to an ETF’s underlying assets or net asset value (“NAV”).  As a result, many investors who sold ETF shares pursuant to market or stop-loss orders sold at prices far below the underlying NAV of their ETF portfolio.  Investors and their advisors remained ignorant of the unique risks of using market or stop-loss orders with iShares ETFs.

Then, on Monday, August 24, 2015, iShares investors who placed market or protective stop-loss orders prior to or at the opening of the markets were again slammed with disproportionate losses when 19.2% of all ETFs experienced price declines of more than 20%, compared to an average decline of only 4.7% in underlying corporate securities.  Investors in Blackrock’s iShares ETFs suffered significant damages as a result.

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% of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email us at iShares@hbsslaw.com.

Hagens Berman Sobol Shapiro LLP notifies BlackRock ETF investors that on April 27, 2017, the San Francisco Superior Court entered an order in the investor case against BlackRock Inc., iShares Trust and their affiliates. The case is brought on behalf of investors of BlackRock iShares Exchange Traded Funds (“ETFs”) who used market or stop loss orders and suffered losses when the underlying value of the assets in BlackRock ETFs disengaged from the ETF price during the August 24, 2015 ETF Flash Crash.

The Court order, finds that plaintiffs have stated a claim pursuant to Section 11 of the 1933 Securities Act, for failure to disclose the risks of using market and stop loss orders, and for misleading investors on the tradability and liquidity of BlackRock ETFs. The Court has reserved for future determination whether articles in the press concerning these risks were “clouded” by BlackRock’s actions and statements to the contrary.

The Court has scheduled a hearing for June 15, 2017 at 4:00 p.m. to discuss resolution of these and other issues, including whether ETF shares can be traced to any registration statement once traded in the market.

Plaintiffs’ counsel is investigating what BlackRock told investors and their advisors concerning the risk of using market or stop-loss orders with ETFs, and what investors and their advisors who used these orders knew or understood about these risks.

The potential class includes those who purchased iShares ETFs between June 16, 2013 and August 24, 2015 (the “Class Period”) and sold their iShares ETFs on August 24, 2015 pursuant to a market or stop-loss order, and were damaged thereby.

If you are an investor who fits this description, an investment advisor, or other person with knowledge or information concerning these issues, contact Plaintiffs’ counsel at  

https://www.hbsslaw.com/cases/blackrock-ishares-etf-august-24-2015-flash-crash-litigation 

or contact Reed Kathrein, who is leading the firm’s effort, by calling 510-725-3000 or emailing by emailing iShares@hbsslaw.com. A copy of the First Amended Complaint can be found here and the order can be found here.

The ticker symbols for the ETFs involved include: VIG, SDY, DGRO, HDV, IYY, IFEU, REET, IFGL, IDV, JKD, JKE, JKF, JKG, JKH, JKI, JKJ, JKK, JKL, REM, DSI, KLD, IFNA, FTY, REZ, IYT, ITA, IYM, IAI, IYK, IYC, IYE, IYG, IYF, IYH, IHF, ITB, IYJ, IAK, IHI, IEO, IEZ, IHE, IYR, IAT, IYW, IYZ, IDU, AIA, IJH, ITOT, IUSG, IUSV, EMIF, IEV, IOO, ICLN, RXI, KXI, IXC, IXG, IXJ, EXI, IGF, MXI, IXN, IXP, WOOD, JXI, IWC, IBB, IWB, IWF, IWD, IWM, IWO, IWN, IWV, IWR, IWP, IWS, IWL, IWY, IWX, OEF, IVW, IVE, IJK, IJJ, IJT, IJS, PFF, VTI, VEA, VTV, VIG, VUG, VGK, EFA, SPY, VOO, GLD, AGG, VWO, QQQ, VNQ, VEA, LQD.


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