Boston, Massachusetts--(Newsfile Corp. - February 25, 2021) - Berman Tabacco, a national class action law firm representing investors, is investigating potential violations of the federal securities laws by Infinity Q Capital Management (NASDAQ: IQDNX) (NASDAQ: IQDAX) ("Infinity Q") in connection with the Infinity Q Diversified Alpha Fund (the "Diversified Alpha Fund").
On February 22, 2021, Bloomberg reported that Infinity Q is shutting down the Diversified Alpha Fund, a $1.8 billion mutual fund, after learning that the Securities and Exchange Commission ("SEC") was "investigating whether the firm's chief investment officer incorrectly valued complex derivatives." According to Bloomberg, "the CIO and majority owner of the firm, has been placed on administrative leave" and the SEC "informed the company that investigators obtained evidence that [the CIO] adjusted models used to price swap contracts held by the Infinity Q Diversified Alpha Fund, likely resulting in incorrect valuations being reported to investors." Further, the "SEC issued an order approving Infinity Q's request to temporarily halt redemptions in the fund, which the firm plans to liquidate after determining the proper value for swap contracts that comprise about 18% of its assets."
On February 24, 2021, a class action lawsuit was filed in the Supreme Court of New York on behalf of "all persons and entities who purchased shares of the Fund (tickers: IQDAX (Investor Class), IQDNX (Institutional Class)) during the period of February 24, 2018 through February 18, 2021, inclusive (the 'Class Period'), pursuant and/or traceable to one of the Fund's Registration Statements or Prospectuses." The class action complaint alleges violations of the Securities Act of 1933 against Infinity Q, the Diversified Alpha Fund and others.
If you would like more information regarding this investigation, or if you wish simply to share information about the investigation, please visit: https://www.bermantabacco.com/case/infinity-q-capital-management/.
Berman Tabacco is a national law firm representing institutions and individuals in lawsuits, seeking to recoup losses caused by corporate and board misconduct and violations of the securities and antitrust laws. The firm has offices in Boston, Massachusetts and San Francisco, California.
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Jay Eng, Esq.
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