If you have suffered a loss on your Easterly ROCMuni High Income Municipal Bond Fund f/k/a Principal Street High Income Municipal Fund (“Easterly” or the “Company”) (NYSE: RMHIX, RMHVX, RMJAX) investment, contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below to discuss your rights or interests in the securities fraud class action lawsuit at no cost.

Investors have until September 22, 2025 to ask the Court to appoint them as lead plaintiff.

[CONTACT THE FIRM IF YOU SUFFERED A LOSS]

What Happened?

On June 17, 2025, Bloomberg published an article called “Easterly High-Yield Muni Fund Plunges Nearly 50% in Sales Dump.” According to the report, the net asset value of the Easterly ROCMuni High Income Municipal Bond Fund dropped sharply from $6.15 on Friday morning, June 13, 2025, to just $3.16 by Monday, June 16, 2025. In addition, the fund’s total assets fell from around $245 million at the end of February 2025 to only about $67 million.

What Is The Lawsuit About?

The lawsuit has been filed on behalf of investors who purchased securities during the period of July 29, 2022 through June 12, 2025, inclusive (“the Class Period”). The lawsuit alleges that defendants made false and/or misleading statements and/or failed to disclose that: (i) the Easterly ROCMuni Fund had marked tens of millions of dollars’ worth of its portfolio assets at artificially inflated prices that did not reasonably reflect the fair value of those assets; (ii) the Easterly ROCMuni Fund had implemented a fundamentally flawed pricing and valuation methodology which had systematically inflated the Easterly ROCMuni Fund's NAV and individual asset valuations; (iii) the Easterly ROCMuni Fund was more heavily invested in illiquid assets than disclosed in its Offering Materials; and (iv) the Easterly ROCMuni Fund's assets were more closely correlated and less diversified than disclosed in its Offering Materials.

The Easterly ROCMuni class action lawsuit further alleges that on June 13, 2025, the Easterly ROCMuni Fund abruptly marked down the value of Easterly ROCMuni Fund shares by 30%. The per share NAV of RMHIX was marked down from $6.15 per share the prior day to $4.33 per share; the per share NAV of RMHVX was marked down from $6.19 per share the prior day to $4.36 per share; and the per share NAV of RMJAX was marked down from $6.13 per share the prior day to $4.31 per share. The value of Easterly ROCMuni Fund shares continued to plummet in subsequent days, falling to less than $3 per share within a span of just two weeks. The total net assets of the Easterly ROCMuni Fund have collapsed from over $230 million as of March 31, 2025 to less than $17 million as of July 8, 2025.

[CLICK HERE TO LEARN MORE ABOUT THE CLASS ACTION]

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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