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Rydex Inverse Government Long Bond Strategy Fund Litigation

Latest News

January 5, 2011 - Court Denies Rydex's Motion to Dismiss. See the Order here.

March 19, 2010 - Sparer Law Group Files Class Action Lawsuit Against Rydex Inverse Government Long Bond Strategy Fund

San Francisco - (Marketwire) On March 19, 2010, Sparer Law Group filed the first class action lawsuit in the nation on behalf of investors who purchased the Rydex Inverse Government Long Bond Strategy Fund (Symbols: RYJAX, RYJUX, RYAQX and RYJCX) between March 19, 2007 and March 19, 2010. The lawsuit seeks to pursue remedies under Sections 11, 12 and 15 of the Securities Act of 1933. A copy of the complaint can be found by clicking here. The Fund claims to perform inversely to the price of the 30-year U.S. Treasury Long Bond. The lawsuit, filed in federal court in the Northern District of California under Case No. 10-CV-1171 CRB, alleges that this mutual fund misled investors by failing to disclose that because the Fund "resets" daily, the Fund is unsuitable for investors who plan to hold it for longer than one trading session, particularly in volatile markets.

For example, between March 20, 2008 and February 22, 2010, the price of the U.S. Treasury long bond fell by 4.91%. A reasonable investor would expect the share price of the Fund to increase by the same amount over the same period. However, the Fund price fell over the same period by 11.29%. If you wish to serve as lead plaintiff, you must move the Court no later than May 18, 2010. If you are an investor and wish to consider joining the lawsuit as lead plaintiff, would like to discuss the lawsuit, or add your name to a list of potential class members receiving regular email updates, please call Plaintiff's counsel Alan Sparer or Kevin Lewis of Sparer Law Group at 415-217-7300, or e-mail You may also submit your contact and investment information by clicking here.

Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Although your ability to share in the recovery is not affected by your decision whether or not to seek such appointment, lead plaintiffs make important decisions which could affect the outcome of the lawsuit, including decisions about settlement. The securities laws require the Court to consider the applicant class member(s) with the largest financial interest in the relief sought as presumptively the most adequate lead plaintiffs.

Sparer Law Group is also investigating other Rydex non-leveraged inverse funds, including the Rydex Inverse Mid-Cap Strategy, Inverse NASDAQ-100 Strategy, Inverse Russell 2000 Strategy, Inverse S&P 500 Strategy, and Inverse High Yield Strategy funds. If you are an investor in any of these funds and have questions about them, please contact the firm at 415-217-7300 or

About the Firm:

Founded in 2003 by Alan Sparer, after 20 years with a large San Francisco law firm, Sparer Law Group built its reputation protecting investor rights and recovering investment losses for individuals and institutions through both individual and collective actions. The firm specializes in cases involving complex securities products including derivatives, restricted stock, hedge fund and private equity investments. In 2009, Sparer Law Group was appointed lead counsel in the consolidated securities class action against the Oppenheimer California Municipal Fund, which lost nearly $1 billion of net asset value in 2008. For more information about Sparer Law Group, go to

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