NEW YORK, Dec. 28, 2007 (PRIME NEWSWIRE) -- Earlier this month, a class action lawsuit was filed against Morgan Keegan in the United States District Court Western District of Tennessee, captioned Atkinson, M.D. et al. v. Morgan Asset Management, Inc. et al., Case No. 2007cv02784. Specifically, the two Morgan Keegan Bond Funds at issue in the class action are the Regions MK Select High Income Bond Fund-I ("RHIIX"), which has a year to date return of -54.35%, and the Regions MK Select Intermediate Bond Fund-A ("MKIBX"), which has a year to date return of -42.73%. However, the Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) continues to investigate several Morgan Keegan Bond Funds, which also sustained heavy losses, including the following:
Ticker Bond Fund Y-T-D Return as of
11/20/07
RMH RMK High Income Fund -60.83%
RSF RMK Strategic Income Fund -61.86%
RHICX Regions MK Select High Income-C -54.66%
MKHIX Regions MK Select High Income-A -54.45%
RIBCX Regions MK Select Intermediate-C -42.96%
RIBIX Regions MK Select Intermediate-I -42.50%
These bond funds sustained heavy losses due to the fact that they were over-concentrated in risky collateralized debt obligations ("CDOs") and other mortgage backed securities. Morgan Keegan may have misrepresented these bond funds to be safe, conservative investments. However, they may have been unsuitable for many Morgan Keegan customers in light of the funds' level of exposure to the CDO and mortgage backed securities markets which have plummeted in recent months.
If you are a brokerage firm customer of Morgan Keegan and lost $100,000 or more in the firm's Bond Funds, please contact Lawrence L. Klayman, Esquire of Klayman & Toskes, P.A., at 888-997-9956, to explore your legal options. You may also visit us on the web at http://www.nasd-law.com.
K&T continues its representation of investors throughout the world in securities arbitration and litigation matters, against major Wall Street brokerage firms for securities violations including fraud, misuse of margin, failure to supervise, unsuitability, misrepresentation and omission of material fact.