The recent large drop in oil prices—and in the prices of futures contracts tied to oil—that has resulted from the COVID-19 pandemic has generated substantial losses for many retail investors. Precedent suggests this may lead to a wave of litigation against fund managers. In the Law360 article "Retail Investors Hit by Oil Price Drop May Turn to the Courts," Principal Ilan Guedj and Senior Economists Sreyoshi Das and Zhong Zhang examine the oil markets in the past few months and the evolving investment intentions and conclude that litigation may end up focusing on repeated and unprecedented 8-K filings, changes in fund objectives, and the impact of these changes on investors.
Sreyoshi Das, Ilan Guedj, and Zhong Zhang
May 28, 2020