If you invested in the United States Oil Fund (USO) during the volatile market period of early 2020, you may be eligible for a payment from a class action settlement. This settlement was reached to resolve allegations that USCF (United States Commodity Funds) and certain officers made misleading statements regarding the fund’s ability to navigate the unprecedented oil market conditions at the time. Understanding whether you qualify and knowing how to submit your claim is the first step toward receiving your share of the settlement fund.
Understanding the USCF Class Action Settlement
The USCF settlement stems from a securities class action lawsuit involving the United States Oil Fund, one of the most popular exchange-traded products for tracking crude oil prices. The lawsuit alleged that the fund’s managers did not adequately disclose the risks associated with the fund’s structure and its investments during the extreme oil price fluctuations in the spring of 2020. While the defendants deny any wrongdoing, they have agreed to a $14.5 million settlement to resolve the litigation and provide compensation to affected investors.
This settlement is designed to help investors who suffered financial losses due to these alleged disclosure issues. Because it is a class action, a single legal team represents a large group of people who are in similar situations. By participating in this settlement, you can claim a portion of the net settlement fund without having to hire your own attorney or file your own individual lawsuit.
Who Is Eligible to File a Claim?
Eligibility for the USCF settlement is based on specific criteria related to when you purchased your shares. Generally, you are considered a member of the settlement class if you purchased or otherwise acquired United States Oil Fund (USO) shares during a specific window of time, often referred to as the Class Period.
The Class Period Dates
The primary group of eligible participants includes those who purchased USO shares between February 25, 2020, and June 8, 2020, inclusive. If you made purchases during this timeframe, you are likely eligible to participate. It is important to note that the settlement typically applies to shares purchased on a public exchange. If you sold your shares at a loss later or held them through the end of the period, your specific financial impact will determine your payout amount.
Exclusions from the Settlement
Not everyone who owned USO is eligible. Typically, the defendants, their families, and certain institutional entities closely tied to the management of the fund are excluded. Additionally, if you previously chose to “opt out” of the class action to pursue your own legal case, you cannot file a claim for this specific settlement. Most individual retail investors who simply bought and sold shares through a standard brokerage account will find they meet the basic eligibility requirements.
Step-by-Step Guide to Filing Your Claim
Filing a claim for a class action settlement is a straightforward process, but it requires attention to detail. Following these steps will ensure your application is processed without unnecessary delays.
1. Gather Your Investment Records
Before you begin the application, you need to have your brokerage statements ready. You will need to provide documentation for every transaction involving USO shares during the Class Period. This includes the date of purchase, the number of shares bought, the price paid per share, and the date and price of any shares you sold. Clear, legible copies of your monthly statements or trade confirmations are the best forms of evidence.
2. Access the Official Claim Portal
The settlement is managed by a third-party claims administrator. You should visit the official settlement website specifically created for this case. On this site, you will find an online version of the Proof of Claim and Release form. Filing online is usually the fastest and most accurate method, as the system can flag missing information before you submit.
3. Complete the Proof of Claim Form
The form will ask for your contact information and your Social Security number or Taxpayer Identification Number for tax reporting purposes. You will then enter your trade history. Be sure to double-check every number. Inaccuracies in the number of shares or the purchase price can lead to your claim being rejected or the payout being significantly reduced.
4. Submit and Save Your Confirmation
Once you have entered all your information and uploaded your supporting documents, submit the form. You should receive a confirmation number or a confirmation email. Keep this for your records. If there is a dispute later regarding whether you filed on time, this confirmation will be your proof of submission.
How Much Money Can You Expect?
The amount of money each investor receives depends on several factors. It is rarely a fixed amount for every person. Instead, the settlement fund is distributed on a “pro rata” basis. This means that after administrative costs and legal fees are paid, the remaining money is divided among all claimants based on the size of their “Recognized Loss.”
Your Recognized Loss is calculated using a specific formula outlined in the Plan of Allocation, which is available on the settlement website. This formula takes into account the timing of your purchases and sales. If the total valid claims exceed the amount of money in the fund, every claimant’s payout is reduced proportionally. Because of this, it is impossible to know the exact dollar amount you will receive until all claims have been processed and verified.
Important Deadlines and Timelines
In any class action settlement, deadlines are strict. If you miss the deadline to file your claim, you will lose your right to receive any compensation, even if you are perfectly eligible. You should check the official settlement website immediately to confirm the “Claim Filing Deadline.”
After the deadline passes, the claims administrator must review every single submission. This process can take several months or even over a year, depending on the number of participants. Once the review is complete and the court grants “Final Approval” to the distribution, the checks or electronic payments will be sent out. Patience is necessary, as these legal processes move slowly to ensure accuracy and fairness.
Conclusion
Filing a claim for the USCF settlement is the only way to recover a portion of the losses you may have sustained during the 2020 USO volatility. By gathering your records and submitting your form through the official claims administrator, you ensure that your rights are protected. If you found this guide helpful, consider exploring our other articles on navigating financial settlements and managing investment records to stay informed about your consumer rights.