On July 22nd, the Second Circuit affirmed the dismissal of a putative class action securities fraud lawsuit. Plaintiffs allege that the offering documents for ProShares ETF were materially misleading and failed to disclose the magnitude and probability of loss for beyond-a-day investments. The Second Circuit found that ProShares cannot be expected to predict and disclose all possible negative results across any market scenario. Moreover, no reasonable investor could read the prospectus without realizing that volatility, combined with leveraging, subjected an investment to a great risk of long-term loss as market volatility increased. In re ProShares Trust Securities Litigation.