Lawsuits you should know about

Morgan Keegan is an investment banking and securities firm which is part of the larger Regions Financial Corporation. Regions serves the southern part of the United States with offices in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia.

Morgan Keegan customers who invested in certain types of Regions Morgan Keegan funds may be able to join a class action lawsuit. During 2007, customers who purchased:

• Regions Morgan Keegan Select High Income
• Regions Morgan Keegan High Income Fund-C
• Regions Morgan Keegan High Income Fund-A
• Regions Morgan Keegan High Income Fund-I
• Regions Morgan Keegan Strategic Income Fund
• Regions Morgan Keegan Intermediate Bond Fund-C
• Regions Morgan Keegan Intermediate Bond Fund-A
• Regions Morgan Keegan Intermediate Bond Fund-I
• Regions Morgan Keegan Multi-Sector High Income
• Regions Morgan Keegan Advantage Income

and lost money as a result of the investment may want to look into legal action against Morgan Keegan. These funds experienced losses of between 50% and 67% during 2007 when the subprime mortgage market dropped. All in all, investors lost over $1 billion dollars. Similar high-yield bond funds during the same time frame did not lose as much as these RMK funds. The lawsuit is open to investors who purchased funds from Morgan Keegan between December 2004 and October 2007.

The class action lawsuit contends that these investors lost money due to the mismanagement and fraudulent misrepresentations by some mutual fund managers. It is believed that these customers were not notified that these new investments had not been thoroughly tested and were traded in markets in which there were fewer buyers. This meant a higher risk of considerable losses for these investors – much higher than they agreed to when they agreed to purchase the RMK funds. It is believed that the fund managers gave the impression that these funds were relatively safe and stable, failing to disclose the risky aspect of investing in them. The lawsuit contends that had these investors been given the entire picture about the funds, many would not have invested in them and therefore not lost money.

To recoup loses from these funds, you may want to speak to a lawyer to see if you are eligible for this class action lawsuit. Being a part of the class action lawsuit means that you will not have to pay any legal fees, including that of the lawyers involved. Investors who lost more than $10,000 may wish to forgo the class action lawsuit and file their own individual case against the company; however, you will be responsible for paying your own legal expenses.

This entry was posted on Monday, September 22nd, 2008 at 8:13 pm and is filed under Lawsuits. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.