Financial investment losses suffered due to drastic declines in certain bond mutual funds were previously pursued through a Morgan Keegan lawsuit.
The lawyers at Saiontz & Kirk are no longer investigating new cases. The information on this page is provided for information purposes only.
During 2007, individuals who purchased shares of certain Morgan Keegan Bond Mutual Funds have suffered substantial losses from the crash of the subprime mortgage market. These losses may have been prevented if Morgan Keegan had properly disclosed the risks associated with the investments.
The lawyers at Saiontz & Kirk, P.A. previously reviewed potential Morgan Keegan lawsuits for individuals who suffered financial losses of $10,000 or more as a result of investment in any of the following bond mutual 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
REGIONS MORGAN KEEGAN BOND FUNDS
Morgan Keegan is the investment banking and securities arm of Regions Financial Corp., which is the largest banking system in Middle Tennessee.. The regional brokerage firm has offices in Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee and Virginia.
As a result of inappropriate investments, certain Morgan Keegan funds suffered losses in excess of 50% during 2007. Fund managers violated the trust of individual investors by placing a substantial portion of their investment in relatively new forms of securities which had not been tested through market cycles. As a result, investors in Morgan Keegan bond mutual funds were exposed to substantially more risk than investors in other intermediate bonds and high income funds, which did not suffer the same drastic losses from market conditions.
Although the Morgan Keegan bond mutual funds were advertised as a conservative investment option that should provide high yields without excessive credit risks, large investments were made in illiquid securities, such as:
- Collateralized Bond Obligations (CBOs)
- Collateralized Loan Obligations (CLOs)
- Collateralized Mortgage Obligations (CMOs)
These investments are considered illiquid securities because they are rarely traded and do not have active price quotes that are maintained. As a result of the subprime mortgage crash during the Summer of 2007, many of these investments suffered substantial losses or became worthless.
Investors were given the false impression that investment in the Morgan Keegan bond mutual funds was a relatively safe and stable investment, and the brokerage firm failed to disclose the true risks of the portfolio. The inappropriate large investments in mortgage-backed securities subjected individual investors to substantial losses from the crisis of the Subprime mortgage market. If proper information and facts about the risks had been provided, many investors may not have accepted this level of risk for financial loss.
MORGAN KEEGAN CLASS ACTION SUITS
Morgan Keegan class action suits were pursued by investors who purchased or acquired shares in the bond mutual funds between December 2004 and October 2007. However, investors who lost over $10,000.00 off of their invested capital were often better suited to file an individual Morgan Keegan lawsuit to seek recovery of their loss.
Update: The lawyers at Saiontz & Kirk are no longer investigating Lawsuits. The information on this page is provided for information purposes only.