Morgan Keegan & Co. Inc. -securities arbitration loss
According to reports, Morgan Keegan & Co. Inc. recently suffered another significant securities arbitration loss when a Financial Industry Regulatory Authority Inc. panel issued a $1.38 million award to an investor, whose complaint stemmed from Morgan Keegan’s proprietary bond funds that blew up during the credit crisis.
Morgan Keegan has faced more than 1,000 such investor claims due to bond fund losses and the latest award is just the latest in a number of large awards against the firm related to this funds.
The investor, Lawrence B. Dale, filed his claim in 2010 and originally requested relief of $4.3 million. Mr. Dale alleged that the fund, called the Morgan Keegan Intermediate Fund, “did not match Morgan Keegan’s misrepresentations, failed to disclose material information, misrepresented values, and invested in structured finance and asset-backed securities” that were unsuitable.
The blowup of the Intermediate Fund and related funds has been a continued source of problems for Morgan Keegan. The fund at the center of this arbitration claim was one of a group whose net asset values dropped between 60% and 80% in 2007 and 2008, and regulators later charged the firm with overstating the value of mortgage-backed securities in the funds.
Last year, the firm agreed to pay a $200 million fine to regulators. This month, the Securities and Exchange Commission filed a civil complaint against the funds’ former board members, alleging that they failed to oversee the funds’ managers.
The White Law Group continues to investigate potential claims involving losses in the Morgan Keegan Intermediate Fund and other Morgan Keegan bond funds.
If you suffered losses in a Morgan Keegan bond fund and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312-238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.