Infinity Q Diversified Alpha Fund (IQDNX/IQDAX) Liquidation

Shareholder Update Regarding Efforts to Make a Final Liquidating Distribution (New 8/12/2025) – The Fund has recently received additional questions from shareholders through this website concerning the Fund’s efforts to fully wind up its affairs and make a final liquidating distribution. In short, the lawsuits and the appeal of the permanent injunction discussed in the Fund’s shareholder updates dated August 27, 2024 and December 19, 2024 are still ongoing. As noted in the December 19, 2024 update, in December 2024 the Mutual Fund Plaintiffs who opted out of the securities class action settlement filed a notice of appeal of the permanent injunction barring current and future lawsuits against the Fund and its indemnitees. That appeal is still pending in the Second Circuit, and as noted in the Fund’s December 2024 update, any additional distribution of assets is likely to be paused until the appeal is resolved. Separately, dispositive motions are due September 12, 2025 in the Mutual Fund Plaintiffs’ opt-out suit, and in the litigation brought by the Fund against US Bancorp and EisnerAmper, discovery continues and is scheduled to conclude no later than October 17, 2025.

Payments from Securities Class Action and Update on Future Fund Distributions (New 3/21/2025) – The Fund has become aware that eligible investors who submitted claims in the securities class action settlement received checks in mid-March from the class action settlement proceeds. These payments do not represent distributions from the Fund and, therefore, do not reduce the amounts of the Fund’s total assets or the Special Reserve, which amounts are reported monthly on the Fund’s website and, as of February 28, 2025 were, respectively, $111,703,327 and $97,635,437. The Fund is not involved in the administration of the securities class action settlement process and, therefore, has no information about the settlement payments that are being made. Please do not submit inquiries about the securities class action payments through this website. Rather, you may submit inquiries through the website for the class action administrator, which can be found here: www.infinityqsecuritiessettlement.com.

Regarding potential future distributions from the Fund, the Special Master will make a recommendation as to the timing of any future and final distributions from the Fund’s Special Reserve and other assets. The Fund is not able to provide an estimate on the timing of such distributions. However, please note that the conditions described in the Fund’s website updates dated August 27 and December 19, 2024 below, concerning impediments to the Fund’s ability to wind up its affairs and make a final liquidating distribution (namely, ongoing litigation), continue to exist.

Shareholder Update Regarding Efforts to Make a Final Liquidating Distribution (New 12/19/2024) – As identified in the August Shareholder Update, in order to hasten the distribution of the Fund’s remaining assets to shareholders, on August 9, 2024, the Special Master filed a request with the federal court overseeing the Fund’s liquidation to have a permanent injunction entered that would bar all current and future lawsuits against the Fund and other parties that the Fund is contractually obligated to indemnify. The Fund also filed a notice with the court joining the Special Master’s request. Mutual Fund Plaintiffs (who opted-out of the securities class action settlement) objected to the permanent injunction in part on the basis that they should be allowed to pursue claims against Quasar even if Quasar seeks indemnification from the Fund. On November 8, 2024, the Court granted the permanent injunction over the Mutual Fund Plaintiffs’ objection. On December 6, 2024, Mutual Fund Plaintiffs filed a Notice of Appeal of the permanent injunction. The appeal will determine whether the permanent injunction will stand. Accordingly, any further reduction in the Fund’s Special Reserve and any additional distribution of assets is likely to be paused until the appeal is resolved. In the action commenced by the Fund, through its Special Litigation Committee (“SLC”), the court denied motions to dismiss by US Bancorp and EisnerAmper in September 2024. The Fund filed a motion to dismiss certain of EisnerAmper’s counterclaims in November, and briefing on that motion is not yet complete. Any expenses relating to the SLC action are paid out of the Special Reserve.