BOCA RATON, Fla., May 28, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) announced today that it filed a lawsuit against Morgan Keegan and Regions Financial Corp., with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. The lawsuit seeks to recover losses sustained in two open-ended funds, RMK Select Intermediate Bond Fund Class A ("MKIBX") and Class C ("RIBCX") and RMK Select High Income Class C ("RHICX"), as well as one closed-end fund, RMK Multi-Sector High Income Fund ("RHY Fund"). The Claim alleges that the Claimant lost money in these Funds due to Morgan Keegan's false and misleading statements about the Funds' risk tolerance and asset allocation, as well as the lack of diversification. Further, the Claim alleges that Morgan Keegan violated Rule 10b-5 of the Securities Exchange Act of 1934, as well as the applicable state securities act, as a result of the firm's misrepresentations and omissions in connection with its sale of the securities to the Claimant.
Through the first five months of 2008, Klayman & Toskes has filed a number of arbitration claims on behalf of aggrieved investors of the Morgan Keegan Bond Funds, which seek the recovery of millions of dollars. The lawsuits involve losses in the following Morgan Keegan Bond Funds:
Ticker Bond Fund Y-T-D Return as of 12/31/07
RMH RMK High Income Fund -65.53%
RHY RMK Multi-Sector High Income Fund -65.09%
RMA RMK Advantage Income Fund -66.68%
RSF RMK Strategic Income Fund -66.92%
RHICX Regions MK Select High Income-C -59.95%
MKHIX Regions MK Select High Income-A -59.74%
RHIIX Regions MK Select High Income-I -59.64%
RIBCX Regions MK Select Intermediate Bond Fund-C -50.54%
MKIBX Regions MK Select Intermediate Bond Fund-A -50.30%
RIBIX Regions MK Select Intermediate Bond Fund-I -50.07%
Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced losses of $50,000 or more in the Morgan Keegan Bond Funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim may obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
If you lost $50,000 or more in the Morgan Keegan Bond Funds, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, 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. Klayman & Toskes, an experienced and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca