Company: DBE
Filing Date: 2025-11-10
Form Type: 424B3
Source: 0001193125-25-273341
Chunk: 83

Company: Invesco DB Energy Fund
Filing Date: 2025-11-10
Form: 424B3
Chunk 83
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 settle the litigation. On September 1, 2023, the court granted preliminary approval of the settlement. On January 12, 2024, the U.S. Attorney’s Office for the Southern District of New York (“USAO”) and the SEC announced they had reached settlement agreements with MS&Co. in connection with their investigations into MS&Co.’s blocks business. Specifically, MS&Co. entered into a three-year non-prosecution agreement (“NPA”) with the USAO that included the payment of forfeiture, restitution, and a criminal fine for making false statements in connection with the sale of certain block trades from 2018 through August 2021. The NPA required MS&Co. to admit responsibility for certain acts of its employees and to continue to cooperate with and provide certain information to the USAO for the term of the agreement. Additionally, the SEC charged MS&Co. with violations of Section 10(b) of the Exchange Act and Rule 10b-5(b) thereunder for the disclosure of confidential information about block trades and also violations of Section 15(g) of the Exchange Act for the failure to enforce its policies concerning the misuse of material non-public information related to block trades. As part of the SEC agreement, MS&Co. paid disgorgement and a civil penalty. After the agreed-upon credits were applied, MS&Co. paid a total amount of approximately $249 million under both settlements. MS&Co. also faces potential civil liability arising from claims that have been or may be asserted by, among others, block transaction participants who contend they were harmed or disadvantaged including, among other things, as a result of a share price decline allegedly caused by the activities of MS&Co. and/or its employees, or as a result of MS&Co.’s and/or its employees’ failure to adhere to applicable laws and regulations. In addition, MS&Co. has responded to demands from shareholders under Section 220 of the Delaware General Corporation Law for books and records concerning the investigations. Additional or replacement Commodity Brokers may be appointed in respect of the Fund in the future. Conflicts of Interest General The Managing Owner has not established formal procedures to resolve all potential conflicts of interest. Consequently, investors may be dependent on the good faith of the respective parties subject to such conflicts to resolve them equitably. Although the Managing Owner attempts to monitor these conflicts, it is extremely difficult, if not impossible, for the Managing Owner to ensure that these conflicts do not, in fact, result