When are the key legal deadlines and how might they influence the fund's liquidity and market perception?

Key legal deadlines

• Class‑action filing deadline – approximately 30 days after the complaint is served (mid‑September 2025). Investors must decide whether to opt‑in or opt‑out of the suit by this date, and the fund will have to disclose the number of participants and any potential exposure.
  
• Claim‑submission cut‑off – 60 days after the class‑certification hearing (late October 2025). Only claims filed by this date will be eligible for any eventual settlement or judgment.
  

Liquidity and market perception impact

The September deadline forces a near‑term “decision point” for existing shareholders. A sizable opt‑in rate can trigger short‑term selling pressure as investors hedge or liquidate positions to free up cash for potential future liabilities, tightening the fund’s daily trading volume and widening bid‑ask spreads. Conversely, a low participation rate may signal confidence that the alleged exposure is minimal, supporting price stability.

The October claim‑submission deadline adds another layer of uncertainty. Market participants will price in the risk of a potentially large settlement that could erode the fund’s assets‑under‑management (AUM) and NAV. Until the deadline passes, the fund is likely to trade at a discount to its historical NAV and peers in the high‑income municipal space, reflecting heightened perceived risk. Traders can exploit this by short‑positioning the fund on the downside if the discount widens beyond historical norms, or by positioning long on a bounce if the lawsuit is resolved with limited financial impact. Monitoring the opt‑in numbers and any settlement‑pre‑announcement signals in the weeks leading up to the deadlines will be critical for timing entries and exits.