According to the investmentnews.com “The U.S Court of Appeals for the Sixth Circuit late last week upheld the dismissal of a class action fraud lawsuit that was filed by investors against investment bank Morgan Keegan & Co.”
The claim, originating in Tennessee, was in regards to seven investment funds that were managed by Morgan Keegan & Co. It is alleged by securities regulators that “portfolio manager James C. Kelsoe Jr. made ‘price adjustments’ to many of the mortgage-backed securities in the funds as they plummeted in value.”
This most recent ruling on the class action brought about in state court is good news for Morgan Keegan and sets a precedent making it difficult for new cases to be brought regarding these funds in state court, but as the investmentnews.com notes, “The firm is not out of the woods yet…” Currently, there are still pending lawsuits in federal court including two class actions as well as claims filed by individuals.
Additionally, individuals may still be able to bring individual claims against Morgan Keegan if they suffered losses in these funds. The White Law Group continues to evaluate potential FINRA arbitration claims against Morgan Keegan for alleged misrepresentations of Morgan Keegan funds to investors.
If you have questions about an investment you made with Morgan Keegan, please feel free to call The White Law Group for a free consultation at 312/238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com