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Morgan Keegan Arbitration Filings Continue

Morgan Keegan investors critically affected by the subprime mortgage crisis are taking a stand. Recent allegations claim the company inadequately managed funds and unjustly explained losses during the subprime market collapse. Many investors are also accusing Morgan Keegan of fraud because they presented these funds as “safe and stable investments.”

One investor seeking to recover damages filed an arbitration claim with FINRA against Morgan Keegan for $4 million last week.

The claim alleges misrepresentation and omission of information in its registration statements and prospectus releases with regard to the funds’ investments in collateralized debt obligations, resulting in exposure to the subprime mortgage market. Further damages came from false and misleading statements issued by Morgan Keegan with regard to the funds’ safety, and capacity to generate income.

The damages are in connection with the sale of unsuitable funds which include; the RMK High Income Fund (RMH), the RMK Multi-sector High Income Fund (RHY), the RMK Advantage Income Fund (RMA), the RMK Strategic Income Fund (RSF) and the Regions MK Select High Income fund (MKHIX).

There are many other investors in the same situation hoping to recover varying amounts in claims already filed against Morgan Keegan.

Charities and other smaller investors have also been affected by Morgan Keegan. Last October Maddox Hargett & Caruso represented an Indiana-based charity by filing a FINRA claim regarding a loss in a RMK fund totaling almost $50,000.

Investors, big or small, are choosing the arbitration process to recover their damages instead of waiting for a class action lawsuit that could take years to settle. We encourage all investors of Morgan Keegan funds to contact us.

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