A.B. Data to distribute $200M to Morgan Keegan investors
by MBJ Staff
Published: November 1,2011
JACKSON — The U.S. Securities & Exchange Commission and regulators from Tennessee, Alabama, Kentucky, Mississippi and South Carolina have appointed A.B. Data, Ltd. of Milwaukee, Wis., to distribute $200 million to investors from the regulators’ settlements with Morgan Keegan & Company and Morgan Asset Management.
The settlements resulted from an investigation of seven proprietary bond funds sold by Morgan Keegan to more than 30,000 account holders. The firms were charged with sales violations and overvaluing the funds which lost approximately $1.5 billion in value from March 31, 2007, to March 31, 2008. The SEC’s and the five states’ administrative orders required Morgan Keegan and Morgan Asset Management to pay a total of $200 million to establish an SEC Fair Fund and a States’ Fund, both for the benefit of investors.
A.B. Data has previously administered several large settlement funds in securities litigation cases and for the SEC.
The A.B. Data website for investor information is www.abdataclassaction.com under “Morgan Keegan Settlement.” Further, A.B. Data has set up live operators available for questions from investors and they will be available for the duration of the claims process (888-208-9083) during normal business hours. Investor inquiries may also be directed by mail to: Morgan Keegan Settlement, Claims Administrator, c/o A.B. Data Ltd., PO Box 170500, Milwaukee, WI 53217-8091.
The federal and state regulators’ orders also required that the costs for establishing, managing and disbursing these funds shall be paid separately by Morgan Keegan and Morgan Asset Management and will not be paid out of the $200 million in settlement funds which will all go to investors based on the filing of claims. The orders provided that nothing in the settlement requires any investor to give up any rights in arbitration or any other proceeding that the investors are legally entitled to initiate. Investors are not signing releases and the filing of a claim has no effect on whether investors are allowed to bring other claims.
Investors who purchased any of the Morgan Keegan Funds from other broker-dealers are also allowed to file claims for their losses. However, it is important that these investors contact the fund administrator instead of waiting to be contacted because the fund administrator does not have the transaction data for investors that did not have an account at Morgan Keegan.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Palmertree blocked from using public funds for legal defense
- Report: Mississippi only state to see drop in home prices
- District at Eastover takes shape with financing in place, tenant signings under way
- Chris McDaniel gets a thank you note from Travis Childers
- Two companies fined for violations of 'No-Call' law
- Pickering collects more money from failed beef plant project
- States settle with manufacturers in DRAM price-fixing case
- John Ferrucci'a perfect voice is perfect for the Silver Slipper Casino
- City suing Hercules for pollution at shuttered plant site
- The First acquiring Alabama bank in cash/stock deal