Eligible investors have until June 16 to file their claim for a portion of the Morgan Keegan settlement.
Secretary of State Delbert Hosemann said at a news conference Thursday morning that only about 800 of 2,400 Mississippians due settlement funds have submitted a claim. The $200 million settlement was reached after regulators accused Morgan Keegan of misleading its investors about the dangers of certain proprietary bond funds.
In Mississippi, Hosemann said, more than $70 million in losses were incurred. “And there’s still a lot of money out there because not all Mississippians who need to have filed their claims,” he said. Hosemann said his office has sent letters and placed phone calls to investors, but his staff hasn’t been able to reach some of them. If you held one or more of Morgan Keegan’s bond funds between early 2007 and early 2008, you’re most likely eligible for a check, Hosemann said.
The June 16 deadline applies only to the $100 million of the settlement that states will distribute. The Securities and Exchange Commission will distribute the second half of the $200 million. It’s important that claimants participate in the state portion of the distribution for a couple reasons, Hosemann said. The first is that the SEC will have vital contact information when it comes time for that agency to start mailing checks.
The second, and most important, is that this $200 million will be distributed no matter how many eligible investors participate. There will be no surplus. It’s possible an investor could receive more money back than he or she lost because enough folks didn’t file a claim.
“Don’t let someone else get your money,” Hosemann said. “Get your name in the hat.”
To do that, contact Hosemann’s office at (601) 359-6742. Or, investors can call A.B. Data, the company handling the claims process, at (800) -208-9083.