News Tagged ‘claims’

Regions eyes Morgan Keegan sale as investment arm settles Fraud claims

Morgan Keegan & Co. Inc., an investment brokerage owned by Regions Financial Corp., has announced a $200 million settlement in relation to charges of consumer fraud stemming from investments tied to the mortgage bond market. The company has been battling numerous lawsuits brought on behalf of clients that allege Morgan Keegan falsely represented proprietary mutual funds as “low risk” investments when they were actually tied to the volatile mortgage market.

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FINRA statistics show uptick in bond fund lawsuits

FINRA logo 100x100According to a report in U.S. News & World Report, recent statistics released by the (FINRA), the organization that handles almost all securities arbitration, including by Morgan Keegan investors, show there has been a notable increase in the number of filings. In particular, the organization is seeing an increase in involving bond funds, which are represented as generally secure investments.

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Regions stock drops in light of arbitration losses

Regions Financial Corp., based in Birmingham, Ala., was on the recent Market Watch list of “notable moves” in the stock market. Unfortunately for the company, it was listed alongside General Motors (GM) on the list of “decliners” after experiencing a 5.9 percent drop in stock value.

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RMK lawsuits may be consolidated in Tennessee

The Daily News, which covers Memphis, reported yesterday that class action cases against Morgan Keegan (RMK) pending in U.S. District Court for the Western District of Tennessee may be consolidated under U.S. District Judge Hardy Mays. The paper reports Judge Mays issued a ruling Tuesday that answers some questions about the request, and which group or groups could be selected as lead plaintiff in that event.

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Subprime Mess at Morgan Keegan

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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