2 unchanged sentences
In addition, USCF, as the general partner of USO and the Related Public Funds may, from time to time, be involved in litigation arising out of its operations in the ordinary course of business.
−Removed: Except as described herein, USO and USCF are not currently party to any material legal proceedings.
+Added: Except as described herein, neither USO nor USCF is currently party to any material legal proceedings.
Optimum Strategies Action
On April 6, 2022, USO and USCF were named as defendants in an action filed by Optimum Strategies Fund I, LP, a purported investor in call option contracts on USO (the “Optimum Strategies Action”).
−Removed: The action is pending in the U.S.
+Added: The action was in the U.S.
District Court for the District of Connecticut at Civil Action No.
3:22-cv-00511.
−Removed: The Optimum Strategies Action asserts claims under the Securities Exchange Act of 1934, as amended (the “1934 Act”), Rule 10b-5 thereunder, and the Connecticut Uniform Securities Act.
−Removed: It purports to challenge statements in registration statements that became effective in February 2020, March 2020, and on April 20, 2020, as well as public statements between February 2020 and May 2020, in connection with certain extraordinary market conditions and the attendant risks that caused the demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war.
−Removed: The complaint seeks damages, interest, costs, attorney’s fees, and equitable relief.
−Removed: USCF and USO intend to vigorously contest such claims and have moved for their dismissal.
+Added: The Optimum Strategies Action asserted claims under the Securities Exchange Act of 1934, as amended (the “1934 Act”), Rule 10b-5 thereunder, and the Connecticut Uniform Securities Act (“CUSA”).
+Added: It purported to challenge statements in registration statements that became effective in February 2020, March 2020, and on April 20, 2020, as well as public statements between February 2020 and May 2020, in connection with certain extraordinary market conditions and the attendant risks that caused the demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war.
+Added: The complaint was seeking damages, interest, costs, attorney’s fees, and equitable relief.
+Added: On March 15, 2023, the court granted the USO defendants’ motion to dismiss the complaint.
+Added: In its ruling, the court granted the USO defendants’ motion to dismiss, with prejudice, the plaintiff’s claims under Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and a claim for control person liability under Section 20(a) of the Exchange Act.
+Added: Having dismissed all claims over which the court had original jurisdiction, the court declined to exercise supplemental jurisdiction over the plaintiff’s state law claim under CUSA and dismissed the claim without prejudice.
+Added: No notice of appeal was filed.
Settlement of SEC and CFTC Investigations
1 unchanged sentence
On August 17, 2020, USCF, USO, and John Love received a “Wells Notice” from the staff of the SEC (the “SEC Wells Notice”).
−Removed: The SEC Wells Notice stated that the SEC staff made a preliminary determination to recommend that the SEC file an enforcement action
−Removed: against USCF, USO, and Mr.
+Added: The SEC Wells Notice stated that the SEC staff made a preliminary determination to recommend that the SEC file an enforcement action against USCF, USO, and Mr.
Love alleging violations of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933, as amended (the “1933 Act”), and Section 10(b) of the Securities Exchange Act of 1934, as amended (the “1934 Act”), and Rule 10b-5 thereunder.
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These allegations stem from USO’s disclosures and defendants’ alleged actions in light of the extraordinary market conditions in 2020 that caused demand for oil to fall precipitously, including the COVID-19 global pandemic and the Saudi Arabia-Russia oil price war.
−Removed: The complaints seek, on behalf of USO, compensatory damages, restitution, equitable relief, attorney’s fees, and costs.
+Added: The complaints seek, on behalf of USO, compensatory damages, restitution,
+Added: equitable relief, attorney’s fees, and costs.
The plaintiffs in the Cantrell and AML Actions have marked their actions as related to the Lucas Class Action.
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.