ETFMG claims PureFunds violated certain agreements that forced the ETF issuer to terminate the partnership. PureFunds is contesting the termination.
“At a board meeting in April of this year, the board tasked with overseeing HACK approved a reduction in the fund’s management fee from 0.75% to 0.60% effective May 1, 2017, in a move meant to benefit shareholders and better align the fund with its competitive landscape. Also on May 1, 2017, Mr. Chanin initiated legal action against ETF Managers Group challenging the fee reduction. The same court has twice rejected his claims in hearings on the matter,” according to the ETFMG statement.
ETFMG previously announced the closure of the PureFunds Solactive FinTech ETF (NasdaqGM: FINQ) and PureFunds ISE Big Data ETF (NYSEArca: BIGD), which stopped trading July 31.
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