Morgan Keegan recently suffered two more arbitration losses related to its collapsed bond funds. On April 23, 2009 an arbitration panel in Alabama awarded two investors compensatory damages totaling over $76,000 as well as an award of costs in connection with losses they suffered as a result of an investment in the Morgan Keegan bond funds. Four days later, an arbitration panel in Kentucky awarded an investor in the Morgan Keegan funds $67,860 in compensatory damages, $16,828 in interest and $30,428 in attorneys’ fees.
The recent awards of costs and attorneys’ fees in the Morgan Keegan bond cases continue to indicate 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 funds to investors. At issue is the performance of seven former Regions Morgan Keegan bond funds that lost 90 percent of their value since mid-2007. The total amount awarded to investors harmed by the funds now totals more than $1.6 million over the past two months.
According to Pratt H. Davis of Page Perry in Atlanta, GA, “it is our position that 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.”
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 securities cases. For further information, please contact us.