MEMPHIS — A class action lawsuit has been filed against Memphis-based Morgan Keegan alleging that investors in four mutual funds were not informed about risky investments that resulted in $1 billion in losses.
The lawsuit claiming violation of federal securities laws was filed in U.S. District Court in Memphis by Labaton Sucharow, LLP, May 19.
The states of Mississippi, Alabama, Kentucky and South Carolina along with the Securities and Exchange Commission and the Financial Industry Regulatory Authority have previously announced administrative actions against Morgan Keegan, which is owned by Birmingham, Ala.-based Regions Financial Corp.
Kathy Ridley, a spokeswoman for Morgan Keegan, said the filing is similar to other class action lawsuits that are still pending in court and there are no new allegations.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info