Morgan Keegan Lawsuit: Textbook Example of Poor Investment Structures
According to an article in the Memphis Business Journal, the growing number of Morgan Keegan lawsuits and arbitration claims filed this year, are likely to serve as textbook examples for college finance courses on poor investment structures. Thousands of investors who lost money as a result of fund managers’ decision to heavily invest in risky subprime mortgage backed securities, are now pursuing lawsuits against Morgan Keegan to recover their investment losses.
Memphis-based Morgan Keegan is the investment banking and securities arm of Regions Financial Corp., the largest banking system in Middle Tennessee. Following the crash of the subprime mortgage market in 2007, shareholders of certain Morgan Keegan Bond Mutual Funds suffered substantial financial losses.
The losses have been blamed on decisions to place a significant amount of their bond fund assets in relatively new collateralized securities, which had not been tested through market cycles. This exposed the Morgan Keegan bond mutual fund investors to a higher amount of risk than they were ever told about. Many of the Morgan Keegan lawsuits allege that investors were misled by representations that the bond mutual funds were a relatively stable and safe investment.
An article published Friday in the Memphis Business Journal highlights the problems Morgan Keegan is facing. As quoted in the article, Morningstar senior fund analyst Lawrence Jones said:
“From an investment manager case study, this will become one of the cases taught in business school about how illiquid, thinly traded securities can sink a fund in short order.”
MORGAN KEEGAN LAWYERS
The financial fraud lawyers at Saiontz, Kirk & Miles, P.A. are reviewing potential claims on behalf of investors who lost over $10,000 as a result of an investment in any of the following Morgan Keegan bond funds:
- Regions Morgan Keegan Select High Income
- Regions Morgan Keegan High Income Fund
- Regions Morgan Keegan Strategic Income Fund
- Regions Morgan Keegan Select Intermediate Bond Fund
- Regions Morgan Keegan Multi-Sector High Income
- Regions Morgan Keegan Advantage Income
If you, a friend or family member have suffered financial losses, request a free consultation and claim evaluation.
