United States Oil Fund (USO) receives Wells Notice from SEC

United States Oil Fund (NYSE: USO) disclosed this morning:

On August 17, 2020, United States Commodity Fund LLC (“USCF”), United States Oil Fund LP (“USO”), and John Love received a “Wells Notice” (the “Wells Notice”) from the staff of the U.S. Securities and Exchange Commission (the “SEC”). The Wells Notice relates to USO’s disclosures in late April and early May regarding constraints imposed on USO’s ability to invest in Oil Futures Contracts (as defined in the Prospectus). The Wells Notice states that the SEC staff has made a preliminary determination to recommend that the SEC file an enforcement action against USCF, USO, and Mr. Love alleging violations of Sections 17(a)(1) and 17(a)(3) of the Securities Act of 1933, as amended, and Section 10(b) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder, in each case with respect to its disclosures and USO’s actions during that period.

A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law. USCF, USO, and Mr. Love maintain that USO’s disclosures and their actions were appropriate. They intend to vigorously contest the allegations made by the SEC staff in the Wells Notice and expect to engage in a dialogue with the SEC staff regarding this matter.

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