$24 Million in Awards Against Morgan Keegan
An article in the “Tennessean” revealed that there have been 129 arbitration cases against Regions Morgan Keegan (RMK) that have resulted in $24 million in awards to investors, through mid February 2011. This of course doesn’t take into account the multitude of cases that have been settled where the parties agree to confidentiality as to the terms and amounts involved. The claims being exerted are for the failure of RMK to make proper disclosure to customers of the material facts about the proprietary funds, more specifically about the risks involved.
Morgan Keegan is up against the wall for more than $2 billion of their bond funds sold to investors that were backed by subprime mortgages. Those funds plummeted in value when the subprime mortgage crisis hit causing investors to lose between 50% or 65% of their value. While the funds were marketed as being suitable for those wishing to protect their principal and have a steady stream of income, they lost more money than any other funds from other companies during the crisis.
If you have suffered RMK fund losses, please contact our firm immediately for a confidential consultation at 1-800-259-9010.