A securities class action has been filed against WILDERMUTH FUND (WESFX) on behalf of all persons and entities that purchased and/or otherwise acquired shares of the “Wildermuth” mutual fund classes – Class A (ticker: “WESFX”), Class C (ticker: “WEFCX”), and Class I (ticker: “WEIFX”) – between November 1, 2020 through June 29, 2023. This case has been filed in the USDC – NJ.
Wildermuth Fund (the “Fund”) is a closed-end investment company that operated as an interval mutual fund registered under the Investment Company Act of 1940, and Wildermuth Advisory, LLC (the “Adviser”) served as the Fund’s investment adviser until November 1, 2023. WithumSmith+Brown, PC’s was the Fund’s auditor during the Class Period.
The Class Action alleges that, during the Class Period, Defendants violated the Securities Exchange Act of 1934 and the Investment Company Act of 1940, by (1) miscalculating the fair value of the Fund’s investments without sufficient, reliable evidence to support them; (2) failing to disclose that certain portfolio companies with questionable going concern value were being propped up with monthly cash infusions by the Fund; and (3) intentionally inflating the Fund’s net asset value, leading to the payment of excessive and unearned advisory fees to the Adviser, all of which damaged Class members.