Sokolow v. LJM Funds Management, Ltd.

Settled: December 18, 2019

On June 26, 2018, Labaton Sucharow was appointed as co-lead counsel in this securities class action against LJM Funds Management, Ltd. (“LJM”) and certain investment companies, underwriters, and individual defendants. Based in Chicago, LJM was the investment advisor to the LJM Preservation and Growth Fund (the “Fund”) and was responsible for managing the Fund’s investments, executing transactions, and providing related advisory services.

The lead plaintiffs filed a consolidated complaint on August 16, 2018, in the United States District Court for the Northern District of Illinois, alleging that the Fund issued registration statements and prospectuses that contained false and misleading statements that promoted the Fund as a low-risk and trend-neutral investment.  Contrary to such statements, the Fund was overexposed to the risk of volatility and a down market, as reflected in its losing 80% of its value in just two days as markets dropped and volatility spiked.  Indeed, the Fund was overexposed to the risk of volatility through leveraged options that required the Fund to liquidate its capital to pay off its positions when the market declined and volatility increased and had no investment or market position to adequately preserve capital and mitigate risk in the face of volatility.

On August 19, 2019, lead plaintiffs and Northern Lights Distributors, LLC, NorthStar Financial Services Group, LLC, and Two Roads Shared Trust and its Trustees and Officers executed a Stipulation and Agreement of Partial Settlement for $12.85 million.  The claims against LJM Funds Management, Ltd., Anthony J. Caine, and Anish Parvataneni will continue to be litigated.

The case is Sokolow v. LJM Funds Management, Ltd., No. 18-cv-01039, (N.D. Ill.).  The lead plaintiffs are Justin and Jenny Kaufman, Joseph N. Wilson, Dr. Larry and Marilyn Cohen, Tradition Capital Management LLC (“Tradition”), and SRS Capital Advisors, Inc. (“SRS”).  Labaton Sucharow represents Tradition and SRS.

This Action is separate from the parallel state class action also entitled Sokolow v. LJM Funds Management, Ltd., et al., Case No. 18-CH-11880, pending in the Circuit Court of Cook County, Illinois.

Submit Claim Form
If you purchased or otherwise acquired shares of the LJM Preservation and Growth Fund (LJMAX, LJMCX, or LJMIX) during the period from February 28, 2015, through February 7, 2018, inclusive, you may be entitled to a payment from a class action settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by December 11, 2019.

Settlement Hearing
A Settlement Hearing was held on December 18, 2019, before the Honorable Robert M. Dow, Jr., at 9:15 a.m. in Courtroom 2303 of the United States District Court for the Northern District of Illinois, Everett McKinley Dirksen United States Courthouse, 219 S. Dearborn, Chicago, IL 60604.

If you have questions about the Settlement, please contact Labaton Sucharow at or 1-888-219-6877, or contact the Claims Administrator, Epiq at 1-855-915-0913.  Additional information about the Settlement can also be found at: