Easterly ROCMuni High Income Municipal Bond Fund (RMHIX) Investigation Update
The White Law Group continues to investigate potential securities claims involving the Easterly ROCMuni High Income Municipal Bond Fund (Ticker: RMHIX) after the fund’s dramatic collapse in June 2025. News reports indicate that investors in the fund have already filed lawsuits and complaints against Easterly Funds, and at least one arbitration claim has been filed against a financial advisor.
If you invested in the Easterly ROCMuni High Income Municipal Bond Fund and suffered losses, call us at (888) 637-5510 for a free consultation, or contact us online.
Update: Federal Court Allows Key Claims to Proceed
On August 17, 2026, a federal judge in the Southern District of New York reportedly granted the fund’s motion to dismiss the investor class action, but allowed claims tied to the fund’s illiquid investment holdings to move forward. The case, now consolidated in the Southern District of New York, is one of the litigation tracks investors may point to when evaluating their own claims, though it does not decide liability and does not cover investors’ individual broker-related claims.
What Happened to the Easterly ROCMuni Fund
The fund was marketed as a municipal bond fund a category typically associated with conservative, government-backed debt. Instead, it held a heavy concentration of unrated and lower-quality municipal securities tied to speculative private projects. In June 2025, the fund’s value collapsed as it was forced to sell illiquid holdings to meet redemptions, and industry reporting described the sell-off as driven by flawed pricing and inadequate diversification.
Collapse of RMHIX and Investor Losses
In June 2025, RMHIX experienced a stunning collapse, with investors losing more than 50% of their value in just two days. According to Bloomberg News, a third of the fund’s holdings were already in default at the time of liquidation, and more than 90% were unrated.
To meet redemption requests, Easterly reportedly sold dozens of illiquid and defaulted bonds for pennies on the dollar.
Lawsuits and Investor Complaints
The Boston-based fund company has been hit with at least two shareholder lawsuits, alleging that Easterly:
- Inflated the value of certain fund assets.
- Misrepresented its exposure to illiquid and defaulted securities.
If you purchased RMHIX through a broker or financial advisor, you may also have grounds to file a lawsuit or complaint for recovery of your losses.
Broker Duty and Potential Claims
Brokers and advisors have a duty to recommend investments that are suitable given their client’s financial situation, risk tolerance, and investment objectives. Recommending a high-risk fund like RMHIX to conservative or income-oriented investors may be considered unsuitable.
If your financial advisor misrepresented the nature of RMHIX or failed to disclose the risks of junk municipal bonds, you may be able to pursue damages through a FINRA arbitration claim.
How to Recover Losses in RMHIX
Investors don’t need to wait on the outcome of the class action to pursue their own recovery. Most brokerage account agreements typically include a pre-dispute arbitration clause, so individual claims against a broker or firm are usually resolved through FINRA arbitration rather than court, and arbitration can still result in a monetary recovery. The White Law Group has represented investors in FINRA arbitration claims involving unsuitable recommendations, misrepresentation, and failure to supervise.
Through FINRA arbitration, investors may be able to recover losses without filing a class action or pursuing lengthy court litigation.
Free Consultation
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago and Seattle. If you invested in the Easterly ROCMuni High Income Municipal Bond Fund and suffered losses, call us at (888) 637-5510 for a free consultation, or contact us online. You can also reach our FINRA arbitration attorneys directly to discuss your options.
Frequently Asked Questions
1. Why did RMHIX collapse in 2025?
RMHIX collapsed due to its heavy concentration in risky, unrated, and defaulted bonds. When investors began redeeming shares, the fund was forced to sell illiquid assets for pennies on the dollar, causing massive losses.
2. How do I file a claim to recover my losses in this fund?
Most investors pursue recovery through FINRA arbitration rather than the pending class action, since brokerage account agreements typically require disputes with your broker to go through arbitration. Arbitration is often faster than court litigation and can still result in a monetary recovery.
3. Why was this fund considered unsuitable for some investors?
Unsuitability means a broker recommended an investment that didn’t match the client’s risk tolerance or goals. This fund carried significant credit and liquidity risk that made it a poor fit for conservative, income-focused investors, even though it was marketed as a municipal bond fund.
4. Can my brokerage firm be held responsible even if it didn’t cause the fund’s collapse?
Yes. Firms have a duty to supervise their brokers’ recommendations, and a firm can be liable if it failed to catch or stop an unsuitable recommendation. That responsibility exists separately from any fault at the fund level.
