On July 22, 2013, the U.S. Court of Appeals for the Second Circuit affirmed the dismissal of a class action brought by purchasers of shares in forty-four leveraged ETFs issued by ProShares. The plaintiffs claimed that ProShares had failed to adequately disclose the risk that the ETF shares could lose substantial value when held for longer than one day. The Second Circuit agreed with the district court’s September 2012 ruling that the relevant prospectuses for the ETFs adequately warned investors that the investments could be volatile and that the long-term value of an ETF might diverge significantly from the value of its underlying index. The text of the Second Circuit’s opinion can be found here.