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According to Reuters reporter Jessica Toonkel, New York Judge John G. Koeltl has dismissed a class-action lawsuit against ProShares filed by ETF investors who claimed the risks associated with investing in leveraged ETFs were not fully disclosed.

At the time of the filing in August 2009, I outlined the Details of Class Action Lawsuit Filed Against ProShares SRS, provided my point-by-point rebuttal of every claim, and concluded the suit was without merit.

Judge Koeltl apparently agrees. In the court’s September 10, 2012 dismissal, he wrote that ProShares was explicit in disclosing the risks involved with investing in its products. “That the plaintiffs held the ETF shares over long periods of time, despite the language in the registration statement, is not enough to support a cause of action,” the judge wrote in his dismissal. Assertions made by the plaintiffs were said to be “implausible.”

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Disclosure covering writer, editor, and publisher: No positions in any of the securities mentioned. No positions in any of the companies or ETF sponsors mentioned. No income, revenue, or other compensation (either directly or indirectly) received from, or on behalf of, any of the companies or ETF sponsors mentioned.

Source: Class Action Suit Against ProShares Dismissed