Morgan Keegan Loses Bond Fund Case Where The Investors Did Their Own Research And Purchased Funds Through On-Line Firm

Morgan Keegan loses case in Little Rock involving the RMK High Income Fund (RMH), RMK Advantage Income Fund (RMA), the RMK Strategic Income Fund (RSF) and the RMK Multi-Sector Income Fund (RHY). The Little Rock, Arkansas FINRA arbitration panel awarded the Claimants $541,000, or roughly 90% of the $615,000 that they had asked for. Interestingly, the investors did not purchase the funds through Morgan Keegan or one of their brokers. According to news releases, the Claimants were retirees who did their own research involving the funds on the internet and then made the purchases through an on-line brokerage firm. Based on their research and the SEC filings, they determined that the funds were safer than equities and the disclosures regarding the concentration in the bottom tranches of the structured products was not made by Morgan Keegan. The panel obviously agreed. (FINRA# 09-04501; Herschel Zarecor IRA et al. v. Morgan Keegan & Company, Inc.)

Contact Us
Contact Us: (800) 259-9010