AlphaCentric $20M Securities Class Action Settlement

Investors who purchased or otherwise acquired Class A, Class C or Class I shares of the AlphaCentric Income Opportunities Fund between July 27, 2018, and March 22, 2020, may be eligible to claim a cash payment from a class action settlement.

Mutual Fund Series Trust, AlphaCentric Advisors LLC, Northern Lights Distributors LLC and several individual defendants agreed to pay $20 million to settle a class action lawsuit alleging they made untrue statements and omissions of material fact about the liquidity of the AlphaCentric Income Opportunities Fund in the offering materials during the class period.

Who can file a claim?

The settlement class includes all persons and entities who purchased or otherwise acquired Class A (IOFAX), Class C (IOFCX) or Class I (IOFIX) shares of the AlphaCentric Income Opportunities Fund between July 27, 2018, and March 22, 2020, inclusive.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial purchaser or acquirer, or a legal representative of such purchaser or acquirer, must file the claim.
• All joint purchasers or acquirers must sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others but must provide proof of their authority.
• Class members with shares in multiple accounts must file a separate claim form for each account.

How much can class members get?

The total settlement fund is $20,000,000. The amount each class member receives depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase, redemption and holding
• The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• Actual payments may be higher or lower depending on individual claims and the total number of valid claims submitted.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction using a first in/first out matching method.
• Recognized loss amounts depend on share class and when the class member redeemed or held the shares:
• Class A shares (IOFAX):
• For shares redeemed before Oct. 14, 2020, the recognized loss is the purchase price minus the redemption price.
• For shares redeemed on or after Oct. 14, 2020, through Jan. 20, 2026, the recognized loss is the purchase price minus whichever is greater: the redemption price or $10.65 (the closing price of Class A shares on Oct. 14, 2020).
• For shares held as of the close of trading on Jan. 20, 2026, the recognized loss is the purchase price minus $10.65.

• Class C shares (IOFCX):
• For shares redeemed before Oct. 14, 2020, the recognized loss is the purchase price minus the redemption price.
• For shares redeemed on or after Oct. 14, 2020, through Jan. 20, 2026, the recognized loss is the purchase price minus whichever is greater: the redemption price or $10.60 (the closing price of Class C shares on Oct. 14, 2020).
• For shares held as of the close of trading on Jan. 20, 2026, the recognized loss is the purchase price minus $10.60.

• Class I shares (IOFIX):
• For shares redeemed before Oct. 14, 2020, the recognized loss is the purchase price minus the redemption price.
• For shares redeemed on or after Oct. 14, 2020, through Jan. 20, 2026, the recognized loss is the purchase price minus whichever is greater: the redemption price or $10.66 (the closing price of Class I shares on Oct. 14, 2020).
• For shares held as of the close of trading on Jan. 20, 2026, the recognized loss is the purchase price minus $10.66.

• If the calculation of a recognized loss results in a negative number, the settlement administrator will set it to $0.
• If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim an AlphaCentric settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The deadline to file a claim is May 26, 2026.

Settlement administrator's mailing address: AlphaCentric Securities Litigation Claims Administrator, c/o A.B. Data Ltd., P.O. Box 173017, Milwaukee, WI 53217

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Total shares held as of the close of trading on July 26, 2018
• Trade dates for all purchases, acquisitions and redemptions of fund shares between July 27, 2018, and Jan. 20, 2026
• Number of shares purchased, acquired or redeemed
• Total purchase, acquisition or redemption price
• Total shares held as of the close of trading on Jan. 20, 2026

Class members must also provide documentation to support their transactions in AlphaCentric Income Opportunities Fund shares. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing transactional and holding information

Payout options

• Physical check

$20 million settlement fund

The $20,000,000 settlement fund includes:

• Settlement administration costs: Amount not specified
• Attorneys' fees: Up to $6,666,666.67
• Attorneys' expenses: Up to $625,000
• Service award to class representative: Up to $10,000 total
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: April 27, 2026
• Deadline to file a claim: May 26, 2026
• Fairness hearing: June 4, 2026

When is the AlphaCentric class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Mutual Fund Series Trust, AlphaCentric Advisors LLC, Northern Lights Distributors LLC and several individual defendants violated Sections 11, 12 and 15 of the Securities Act of 1933 by making untrue statements and omissions of material fact about the liquidity of the AlphaCentric Income Opportunities Fund in offering materials issued during the class period. The plaintiffs claimed these misstatements and omissions caused investors to suffer losses.

Defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Claim form