Will there be a suspension of trading or redemption restrictions on the funds during the litigation?

Answer

No, the filing of the securities‑fraud class action does not, by itself, trigger a suspension of trading or any special redemption restrictions on the Easterly ROCMuni High‑Income Municipal Bond funds (RMHIX / RMHVX / RMJAX). The lawsuit is a private civil action brought by investors through Glancy Prongay & Murray LLP. Unless a regulator (e.g., the SEC) or a court issues an injunction that specifically orders a halt to secondary‑market activity or limits redemptions, the funds will continue to operate under their existing prospectus rules—i.e., they remain listed and can be bought or sold on the open market, and investors can redeem shares according to the standard notice periods and fees disclosed in the fund documents.

Trading implications

• Liquidity remains intact: Expect normal bid‑ask spreads and typical daily volume. The market may price in a modest “litigation‑risk” discount, but there is no structural barrier to exiting positions.
• Redemption risk is unchanged: Existing redemption policies (usually 30‑ to 60‑day notice for institutional accounts, daily for retail) still apply. No “freeze” or “gate” has been announced.
• Risk‑adjusted positioning: If you are concerned about potential future liability or fund performance impacts from the lawsuit, consider a modest reduction in exposure or hedging with short‑duration municipal‑bond ETFs. However, the primary driver of price movement will still be the fund’s credit‑quality, yield curve dynamics, and broader municipal‑bond market conditions—not the litigation itself.