Beasley, Allen, Crow, Methvin, Portis & Miles, P.C.

Another class-action lawsuit related to issues regarding the disclosure of subprime debt obligations surfaced in early February when the law firm of Chitwood, Harley, Harnes LLP filed against certain mutual funds offered by Morgan Keegan Select Fund Inc.

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significant financial losses result from investment fund misrepresentation

Investors have filed class action lawsuits as well as individual arbitrations against Regions Morgan Keegan. The suits allege that the Funds and defendants misrepresented or failed to disclose certain material facts related to investments in the Select Intermediate Bond Fund (”MKIBX”) and the Select High Income Fund (”RHIIX”).

Investors who purchased or acquired shares of Regions Morgan Keegan Select Intermediate Bond Fund or Select High Income Fund from December 6, 2004 through October 3, 2007, may have a claim to recover for their losses.

The relevant Morgan Keegan Funds are as follows:

(RMH) RMK High Income Fund
(RHY) RMK Multi-Sector High Income Fund
(RMA) RMK Advantage Income Fund
(RSF) RMK Strategic Income Fund
(RHICX) Regions MK Select High Income-C
(MKHIX) Regions MK Select High Income-A
(RHIIX) Regions MK Select High Income-I
(RIBCX) Regions MK Select Intermediate Bond Fund-C
(MKIBX) Regions MK Select Intermediate Bond Fund-A
(RIBIX) Regions MK Select Intermediate Bond Fund-I

The allegations are that the Funds misrepresented or failed to disclose material facts relating to (i) the nature of the risk being assumed by an investment in the Funds, (ii) the illiquidity of certain securities in which the Funds invested, (iii) the extent to which the Funds’ portfolios contained securities that were highly vulnerable to suddenly becoming unsalable at the prices at which they were being carried on the Funds’ records, (iv) the extent to which the Funds’ portfolios were subject to fair value procedures, (v) the extent to which the values of such securities, and, consequently, the net asset values of the Funds, were based on estimates of value and the uncertainty inherent in such estimated values, and (vi) the concentration of investments in a single industry in excess of investment restrictions to which the Funds were subject.

The extraordinary losses in share value were allegedly caused by the Funds’ heavy investment in relatively new and untested types of manufactured or structured fixed income securities and by the failure of the Funds to comply with required and disclosed procedures relating to the manner in which the Funds’ assets were invested.

These failures rendered the Funds extraordinarily vulnerable to changes in market conditions, far more vulnerable than other intermediate bond and high income funds affected by the same events and conditions in the subprime and other markets in 2007.

The Funds revealed, for the first time, on October 3, 2007 that, as of June 30, 2006, and June 30, 2007, the magnitude of the Funds’ securities that were fair valued and were, therefore, illiquid securities. For MKIBX, it was disclosed that 55.8 percent of its investment securities were fair valued at June 30, 2006, and 50.4 percent at June 30, 2007. For RHIIX, it was disclosed that 49.5 percent of its investment securities were fair valued at June 30, 2006, and 59.7 percent at June 30, 2007.

Thousands of Morgan Keegan investors have suffered significant financial losses due to misrepresentation of funds

Investors have filed class action lawsuits as well as individual arbitrations against Regions Morgan Keegan. The suits allege that the Funds and defendants misrepresented or failed to disclose certain material facts related to investments in the Select Intermediate Bond Fund (”MKIBX”) and the Select High Income Fund (”RHIIX”).

Investors who purchased or acquired shares of Regions Morgan Keegan Select Intermediate Bond Fund or Select High Income Fund from December 6, 2004 through October 3, 2007, may have a claim to recover for their losses.

Do you have a claim against Morgan Keegan?

If your loved one has suffered a significant financial loss as a result of a Regions Morgan Keegan investment, you may have a claim.

Please contact us today by filling out the brief questionnaire, or by calling our toll free number (1-800-898-2034) for a free, no-cost no-obligation evaluation of your case.