Complaint filed on two WisdomTree ETFs' weighted index methodology

By Toni Weeks

San Diego, Dec. 6 - A complaint was filed on Dec. 1 in the U.S. District Court for the Central District of California naming the WisdomTree Domestic Equity ETF and WisdomTree Global Equity ETF as defendants, according to a 497 filing with the Securities and Exchange Commission.

The complaint, filed by Research Affiliates, LLC, also includes each trust's adviser and its affiliates, sub-adviser and distributor as defendants.

The complaint alleges that the fundamentally weighted index methodology used by the funds infringes on three of the Research Affiliates patents. The plaintiff is seeking both an injunction to prevent further infringement as well as unspecified monetary damages.

WisdomTree said in the filing that an adverse resolution of the case could adversely affect fund performance, but it intends to defend against the claims.

WisdomTree is a provider of ETFs and other investment products and is based in New York.

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