Direxion Shares ETF Trust clearly disclosed the risks of trading on four of its exchange-traded funds for more or less than one day, a federal court said in dismissing a securities fraud suit against it.
The two investors who sued Direxion on behalf of a proposed class put money into ETFs “that were fully disclosed to be exceedingly risky investments,” Judge Valerie Caproni said Aug. 25 for the US District Court for the Southern District of New York.
- ETFs typically track indices, with share prices that fluctuate throughout the day
- Self-described day trader Lee Xu alleges he invested more than ...
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