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Altamirano PLLC is investigating claims involving the Easterly ROCMuni High Income Fund (RMJAX, RMHIX, RMHVX). Marketed as a municipal bond fund, Easterly ROCMuni collapsed after concentrating in junk-rated debt, distressed projects, and leveraged municipal securities. Investors who were promised safe, tax-exempt income instead faced steep losses. If you invested in Easterly ROCMuni through a brokerage firm or financial advisor, you may be able to pursue recovery through FINRA arbitration.
April 2026: Tax Filing Deadline and Investor Awareness
With the April 15 tax filing deadline, many investors are now reviewing account statements and tax documents reflecting losses in the Easterly ROCMuni Fund. For some, this is the first time the magnitude of those losses has become clear. In our experience, this is often when investors begin to revisit how the investment was recommended and whether it was consistent with their objectives.
Altamirano PLLC continues to represent investors in FINRA arbitration claims involving Easterly ROCMuni losses, including claims against brokerage firms and financial advisors who recommended the investment. For a recent example, see our filing against Stifel involving a New York investor.
As of April 2026, litigation involving the Easterly ROCMuni Fund continues in federal court.
March 23, 2026 Update: Motion to Dismiss Filed
Defendants filed a motion to dismiss the Second Amended Complaint, arguing that the risks associated with the Easterly ROCMuni Fund were disclosed and that investors were aware they were investing in a high-yield municipal bond strategy. The motion also challenges the legal sufficiency of the claims, including allegations concerning liquidity determinations, valuation, and portfolio concentration.
February 20, 2026 Update: Second Amended Complaint Filed
Plaintiffs in the Easterly ROCMuni class action filed a Second Amended Complaint in the Southern District of New York. The amended filing expands on prior allegations concerning the fund’s exposure to illiquid securities, valuation methodologies, and investment in distressed and defaulted bonds, as well as disclosures made in the fund’s registration statements and prospectuses.
January 23, 2026 Update: Motion Filed to Preserve Records
In the Easterly ROCMuni class action, plaintiffs have moved to serve document-preservation subpoenas on certain nonparties, including Ultimus Fund Solutions (the Fund’s transfer agent) and several financial institutions.
The motion is aimed at preserving account data, transaction records, and related communications held by brokers and agents through whom investors purchased or redeemed shares.
According to the motion, Easterly ROCMuni (RMJAX) investors purchased or redeemed shares through brokers or agents at the following financial institutions:
- LPL Financial LLC
- RBC Capital Markets, LLC
- Stifel Nicolaus & Company
- Charles Schwab & Co., Inc.
- Oppenheimer & Co. Inc.
- National Financial Services, LLC
- Raymond James & Associates, Inc.
- Raymond James Financial Services, Inc.
- Janney Montgomery Scott LLC
- Robert W. Baird & Co.
- Merrill Lynch, Pierce, Fenner & Smith Inc.
- Osaic Wealth, Inc.
December 29, 2025 Update: Fund Announces Plan of Liquidation
On December 29, 2025, the Fund disclosed that its Board of Trustees approved a Plan of Liquidation and Dissolution. According to the Fund’s supplement, the remaining assets will be converted to cash or cash equivalents and distributed to shareholders on a pro rata basis, subject to the resolution of outstanding liabilities.
The Fund also disclosed that it holds certain illiquid investments and that it is a named defendant in a pending class action lawsuit, creating a contingent liability. As a result, the Fund stated that it cannot currently predict when liquidation distributions may begin or how long the liquidation process may take.
Following deregistration as an investment company, the Fund will cease normal operations and will no longer qualify as a regulated investment company for tax purposes. Any liquidation proceeds will be distributed as assets are sold and liabilities are resolved.
These disclosures mean that the remaining value of Fund shares reflects unresolved litigation risk, potential delays in liquidation distributions, and uncertainty regarding the amount ultimately returned to shareholders.
Fund Background
The Easterly ROCMuni High Income Fund promised municipal bond exposure with a high-income focus. But the portfolio carried far more risk than most investors realized. According to the fund’s strategy disclosures, Easterly ROCMuni:
- Invested at least 80% of assets in tax-exempt municipal debt securities.
- Focused on below-investment-grade “junk bonds” and distressed credits.
- Concentrated holdings in healthcare, education, housing, transportation, and power projects.
- Used inverse floaters and other leverage structures, which magnified volatility.
- Could invest in defaulted municipal bonds, Rule 144A private placements, and other illiquid securities.
- Borrowed against credit lines to further leverage the portfolio.
These strategies exposed investors to significant risks, which may not have been adequately disclosed by brokers. The failure to disclose or explain those material risks can constitute broker negligence, exposing firms to investor claims and potential liability in FINRA arbitration.
The fund’s NAV fell sharply in June 2025 after the fund took large markdowns and sold illiquid, high-yield municipal bonds. Many investors saw their holdings drop by a large percentage in a matter of days.
A class action lawsuit over the Easterly ROCMuni Fund losses continues to move forward. The court has set February 20, 2026, as the deadline for the lead plaintiff to file an amended complaint. Defendants must file any motions by January 30, 2026, with responses due February 20 and replies due March 6, 2026.
As of November 7, 2025, the fund’s NAV has dropped more than 60% over the past year, with all three share classes trading between $2.92 and $2.95 per share across RMJAX, RMHIX, and RMHVX.
Brokerage firms that recommended and sold the fund, including Stifel, Nicolaus & Co. and Osaic Wealth (formerly Royal Alliance Associates Inc.), have been mentioned in connection with potential investor claims.
Investor Profile Impact
Easterly ROCMuni was marketed as a municipal bond fund, but its holdings looked nothing like traditional muni portfolios. Instead of stable, investment-grade debt, the fund bought risky project bonds and layered on leverage. For retirees and conservative income investors, that mismatch was disastrous. Retail investors expecting steady tax-free income may have been unaware that the product was heavily invested in junk bonds, distressed issuers, and exotic structures that collapsed under stress or volatility.
Potential Conflicts of Interest and Distribution Fees
Easterly ROCMuni also carried heavy distribution charges. Under Rule 12b-1, the fund’s distributor, Easterly Securities LLC, collected ongoing fees ranging from 0.25% to 1.00% of assets annually depending on share class. Class C shares in particular imposed the highest cost. On top of these fees, the fund’s distributor and adviser paid additional compensation to financial intermediaries, brokers, advisers, banks, and retirement plan administrators. These payments created conflicts of interest, rewarding firms for steering investors into Easterly ROCMuni regardless of suitability or their clients’ best interests.
For investors, this means not only were they placed into an unsuitable, high-risk product, but they were also saddled with unnecessary ongoing fees. Investors may have claims against the brokerage firms that sold the fund for:
- Regulation Best Interest (Reg BI) violations.
- Failure to supervise by brokerage firms that pushed the fund.
- Unsuitable investment recommendations under FINRA Rule 2111.
Key Risks of Easterly ROCMuni
The collapse of the Easterly ROCMuni Fund highlights several risks:
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- Speculative holdings: heavy exposure to junk-rated municipal debt.
- Leverage: inverse floaters and credit line borrowing amplified volatility.
- Illiquidity: positions that could not be easily sold in stressed markets.
- Fee drag: 12b-1 fees and intermediary compensation eroded returns.
- Concentration: bets in narrow sectors like healthcare or housing.
Why It Matters for Investors
The fund’s collapse was not just about market swings. It revealed how brokers pitched and sold Easterly ROCMuni as a municipal bond income fund while downplaying leverage, junk credit, and fees. Investors may have been steered into a product inconsistent with their goals. For example, a broker who placed a retiree into a speculative, high-risk product that did not match the client’s objectives, age, or tolerance for risk.
This fits a familiar pattern: risky, fee-heavy products pushed on retirees and conservative investors in search of safe income.
This collapse of a municipal bond fund marketed as safe income underscores how unsuitable products can devastate retirees and conservative investors.
Easterly ROCMuni High Income Fund: FAQs
Do I have to wait for the GWG Wind Down Trust before filing a claim?
How can Easterly ROCMuni investors recover losses?
What rules may have been violated in the Easterly ROCMuni case?
Contact Altamirano PLLC About Easterly ROCMuni Claims
If you invested in the Easterly ROCMuni High Income Fund (RMJAX, RMHIX, RMHVX) and suffered losses, contact Altamirano PLLC today. Our Principal, Jorge Altamirano, has handled more than 1,500 FINRA arbitration claims and represents investors nationwide.
Call us at (212) 220-6556 to discuss your options. We handle cases on a contingency fee basis, which means you do not owe us a legal fee unless we recover for you.
Securities claims are time-sensitive. Harmed investors are encouraged to act quickly and contact Altamirano PLLC to speak with an experienced securities arbitration lawyer about recovering losses in the Easterly ROCMuni Fund.
