Regions Morgan Keegan Lawsuit

In 2007, a series of Regions Morgan Keegan open-end funds collapsed after plummeting as much as 80% in value. The funds (Regions Morgan Keegan’s Select High Income Fund, Select Intermediate Bond Fund, and Select Short Term Bond Fund), were forced to shut down and liquidate their assets, while investors lost over $1 billion.

These severe losses were not simply the result of the “mortgage meltdown.” Rather, contrary to representations made to investors, the Funds were heavily invested in the riskiest, low-priority tranches of structured finance deal, backed by risky assets. RMK never disclosed to investors that they were exposing them to the riskiest asset-backed securities, causing investors’ massive losses.

Investors brought a series of lawsuits against the defendants, including Regions Financial, Regions Bank, Morgan Keegan & Company, Inc., Morgan Asset Management, and PricewaterhouseCoopers, Inc., alleging violations of federal securities laws, breach of fiduciary duty and other state law causes of action.

Investor Stories

“I feel like I’ve had my pockets picked.  I would have done better putting my money in a savings account that earns 1% interest.” Read more stories like this.

Case Update

• Update on Claims Administration Process in Regulatory Settlement
• Information on the 5 State Regulators’ Settlement
• July 1, 2011: Settlement $200 Million Settlement By Regulators Does Not Reduce Investors’ Damages In Their Lawsuits
  
• Learn more about the litigation.
• View the Alabama Regulatory Consent Order.