A securities class action has been filed in the USDC –N.J. against Wildermuth Fund (WEFCX) (the “Fund”), on behalf of all persons and entities that purchased Class A (WESFX), Class C (WEFCX), and/or Class I (WEIFX) shares in the Wildermuth Fund (a/k/a the Wildermuth Endowment Fund and Wildermuth Endowment Strategy Fund, or the “Fund”) between November 1, 2020, and June 29, 2023, both dates inclusive (the “Class Period”).
The Wildermuth Fund (a.k.a. the Wildermuth Endowment Fund and Wildermuth Endowment Strategy Fund) (hereinafter, the “Fund”) is a closed-end fund that reportedly provided long-term capital appreciation to investors by investing in a diversified portfolio of early-stage private equity positions in various asset classes including technology, real estate, healthcare, energy, and hedge funds, according to its website. The Fund initially claimed that it would invest in a total mix of both liquid, traditional equity and fixed income investments and less liquid, alternative and non-traditional investments. It then shifted its focus to private equity, stating that its goal was “to increase total portfolio return while managing an acceptable level of risk through diversifying into performance-oriented assets other than U.S. stocks and bonds.”.
The Complaint alleges that the Defendants made materially false and misleading representations about the performance, value and future prospects of the portfolio companies. In reality, the performance of the portfolio companies across the entire Fund portfolio was lagging and problematic.
As a result of the undisclosed, severe underperformance of the portfolio companies, falsification of the asset values and reliance on the Adviser Defendants’ false assertions about the value of the portfolio companies without sufficient, credible evidence to support it, the lack of reasonable internal financial controls and independence (including a dysfunctional Board, Fair Value Committee and Valuation Committee), rampant conflicts of interests, the Fund’s financials were materially false and misleading and the NAV was grossly overstated throughout the Class Period. In addition, the Defendants knowingly took an excessive advisory fee based on the Fund’s falsely inflated Net Asset Value (“NAV”).
If you purchased Class A (WESFX), Class C (WEFCX), and/or Class I (WEIFX) shares in the Wildermuth Fund (a.k.a. the Wildermuth Endowment Fund and Wildermuth Endowment Strategy Fund, or the “Fund”) during the Class Period, and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.