Morris Kandinov LLP has filed a derivative suit on behalf of shareholders of the Fiduciary/Claymore Energy Infrastructure Fund (FMO) against the fund’s board of trustees and investment advisers. The case arises from the fund’s collapse after a liquidity crisis in early 2020 and the fund’s unexpected tax expenses disclosed thereafter. As described in detail in the complaint, the fund was aggressively leveraged more than its peers and more than its normal historical range with little downside protection or other risk management procedures. When markets became increasingly volatile in early 2020, the fund’s managers were forced to sell the vast majority of its portfolio at the market bottom to meet margin calls, and the fund lost over 80% of its net assets.
For more information about the case, contact Leo Kandinov at leo@moka.law.
