Morgan Keegan recently suffered it sixth straight loss in arbitration related to its collapsed bond funds. Jerome Woods, who played defensive back for the Kansas City Chiefs, recently received an arbitration award of $950,000 in connection with losses he suffered as a result of an investment in the Morgan Keegan bond funds. A review of the award also indicates that one of the arbitrators on the panel felt compelled to file a dissenting opinion indicating the evidence supported an even greater monetary award. The award to Mr. Woods brings the total awarded to investors harmed by the funds to a total of more than $1.6 million over the past two months.
The recent awards confirm that the arbitration panels hearing these cases have begun to fully appreciate the misconduct that Morgan Keegan engaged in while pushing the sale of the toxic bonds to investors. Investors, like Mr. Woods, suffered tremendous losses when the Morgan Keegan bond funds collapsed.
According to Pratt H. Davis of Page Perry in Atlanta, GA, “it is our position that the funds contained extraordinary risks that were not disclosed to investors. The risk of the collapse of the funds was clear to Morgan Keegan when it sold the funds as the funds investments were highly concentrated in the lower level “tranches” of ultra-risky structured finance products such as collateralized debt obligations, collateralized mortgage obligations and other asset-backed securities, many of which were directly tied to sub-prime mortgages.” When the housing market slumped, the funds began to implode. “The funds were sold as “diversified” but were in actuality a highly leveraged bet on the real estate industry” says Davis.
Page Perry is an Atlanta-based law firm with over 125 years collective experience representing investors in securities-related litigation and arbitration. While past results are not indicative of future success, Page Perry’s attorneys have recovered over $1,000,000 for clients on more than 30 occasions. Page Perry’s attorneys are actively involved in representing investors in Morgan Keegan cases. For further information, please contact us.