Company: EUO
Filing Date: 2025-03-18
Form Type: S-3/A
Source: 0001193125-25-056731
Chunk: 343

Company: ProShares Trust II
Filing Date: 2025-03-18
Form: S-3/A
Chunk 343
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. v. BANK OF AMERICA CORPORATION, ET AL. The plaintiff filed an amended consolidated class action complaint on October 29, 2020. On December 15, 2020, defendants moved to dismiss the amended consolidated class action complaint. On October 25, 2021, the United States District Court for the Southern District of New York granted defendants’ motion to dismiss with prejudice, which plaintiffs noticed for appeal on November 23, 2021. Plaintiffs filed an opening appellate brief on March 3, 2022. The appeal remains pending. Additional information concerning this action is publicly available in court filings under the docket numbers 1:20-cv-03154 (Liman, J.) and 21-2905 (2d Cir.). Record-Keeping Matters Certain U.S. regulators and authorities conducted investigations of CGMI and other firms regarding compliance with record-keeping obligations in connection with business-related communications sent over unapproved electronic messaging channels. CGMI cooperated with the investigations, and in September 2022 entered into resolutions with the SEC and the CFTC, to resolve the SEC’s and CFTC’s respective investigations regarding compliance with record-keeping obligations in connection with business-related communications sent over unapproved electronic messaging channels. Under these resolutions, a $125 million civil monetary penalty was paid to the SEC, and a $75 million civil monetary penalty was paid to the CFTC. Other CFTC Inquiries On December 21, 2017, the CFTC issued a subpoena to Citi which, among other things, required the production of communications, including audio recordings, in connection with an ongoing investigation. On February 9, 2018, Citi represented to Division staff that a hold

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notice had been issued to Citi staff and confirmed that responsive audio recordings would be preserved. On December 3, 2018, in response to additional requests from the CFTC, Citi notified CFTC staff that it had inadvertently deleted certain responsive audio recordings due to a design flaw in its audio preservation system. On September 28, 2020, CGMI, Citibank, N.A., and Citigroup Energy Inc., without admitting or denying any allegation or finding, entered into a civil settlement with the CFTC, pursuant to which they paid a $4.5 million civil monetary penalty in satisfaction of the Commission’s finding of a violation of Regulation 166.3 (requiring diligent supervision of all business activities). Settlement Payments Any