We are investigating ProShares Ultra Bloomberg Crude Oil (UCO) (“UCO” or the “Fund”) for potential violations of the federal securities laws. In early 2020, oil demand fell precipitously as governments imposed lockdowns and businesses halted operations in response to the COVID-19 pandemic. Moreover, in early March 2020, Saudi Arabia and Russia launched an oil price war, increasing production and slashing export prices in a bid to increase the global market share of their domestic petrochemical enterprises. As excess oil supply increased and oil prices waned, the facilities available for storage in Cushing, Oklahoma approached capacity, ultimately causing a rare market dynamic known as “super contango,” in which the futures prices for oil substantially exceed the spot price. At the same time, retail investors began pouring hundreds of millions of dollars into UCO in an attempt to “buy the dip,” on the expectation that the price of oil would rebound as economies exited lockdown periods and the Russia/Saudi oil price war ended. Because of the nature of UCO’s investment strategy, these converging factors caused UCO to suffer significant losses and undermined UCO’s ability to meet its ostensible investment objective. Nevertheless, rather than fully disclose the known impacts and risks to UCO as a result of these threats, the Fund instead opted to conduct a massive offering of UCO shares, ultimately selling billions of dollars’ worth of UCO shares to the market. On March 6, 2020, the Fund announced a public offering of up to $5,123,657,025 in UCO shares via a Form S-3 Registration Statement filed with the U.S. Securities and Exchange Commission (the “March Offering”). After the March Offering, UCO quickly deteriorated, as the Fund suffered billions of dollars in losses and was forced to abandon its investment strategy. Through a series of investment overhauls, UCO was forced to transform from the passive ETF an actively-managed fund struggling to avoid a total implosion. In April and May 2020, UCO belatedly acknowledged the threats and adverse impacts that the Fund had been experiencing at the time of the March offering, but which they had failed to disclose to investors in a timely manner.