Parker Waichman LLP

Regions Morgan Keegan Facing Slew of Arbitration Claims Over Bond Funds

Regions Morgan Keegan is facing an avalanche of arbitration claims over  its failed bond funds.  The first wave of Morgan Keegan  arbitration hearings is scheduled to begin later this year, with more to follow early next year. Plaintiff’s lawyers say 1,000 to 1,500 arbitration cases ultimately could be filed against Morgan Keegan, with potential damages […]

<"https://www.yourlawyer.com/topics/overview/Regions_Morgan_Keegan_Securities_Fraud">Regions Morgan Keegan is facing an avalanche of arbitration claims over  its failed bond funds.  The first wave of Morgan Keegan  arbitration hearings is scheduled to begin later this year, with more to follow early next year. Plaintiff’s lawyers say 1,000 to 1,500 arbitration cases ultimately could be filed against Morgan Keegan, with potential damages surpassing $200 million.

Regions Morgan Keegan is the investment banking and securities division of Regions Financial Corp, the largest banking system in middle Tennessee.    Since 2007, the firm’s Regions Morgan Keegan Select Intermediate Bond Fund and Regions Morgan Keegan Select High Income Fund  lost up to 95 percent of their value, thanks to losing bets on high-risk collateralized debt obligations.

Last month, the <"https://www.yourlawyer.com/topics/overview/stock_fraud">Securities Litigation and Consulting Group, Inc, a financial economics consulting firm that provides expert witnesses to parties involved in securities litigation,  issued a report that found Regions Morgan Keegan misrepresented hundreds of millions of dollars of leveraged asset-backed securities as corporate bonds and preferred stocks.  This made the funds seem more diversified and less risky than they actually were, the report said.

The report concluded that had Regions Morgan Keegan performed a rudimentary analysis on its holdings – as it had claimed to have done – it would have determined that investors in the funds were being exposed  as much as 10 times the credit risk of the underlying, already risky, debt in exchange for 1 percent or 2 percent higher returns than a diversified, transparent high-yield bond portfolio would have earned.

According to investmentnews.com, Morgan Keegan lost its first arbitration case  related to the funds’ losses this month. A panel administered by the Financial Industry Regulatory Authority Inc. of New York and Washington awarded two investor plaintiffs a total of $90,000. The panel also assessed all forum fees against Morgan Keegan. Typically, panels split such fees.

“This is a clear indication of what is to come in arbitration awards against Morgan Keegan,” a lawyer representing the two plaintiffs told the website.

What Our Clients Say About Us
We have worked with thousands of clients and we appreciate them and their positive reviews. Here are just a few recent client reviews...
5 Star Reviews 150
I would recommend this firm to others. They were always quick to reply to any of my concerns, especially Shelly. She would answer my emails almost immediately. Highly professional and hassle free.
Kelly Wheeler
3 years ago
5 Star Reviews 150
Positive: Professionalism , Quality , Responsiveness , Value Extremely professional, and honest , I highly recommend your law firm....
John Hillenbrand
2 years ago
5 Star Reviews 150
They got right on my case. Wasted no time and fought/won the decision to continue with my therapy after the insurance company wanted to terminate it. Even the insurance company knew from my medical records that I needed to continue. My nurse Ms. Joanne Stevens is very concerned about my condition and treatment and assured that I would continue. I am very familiar with this law firm. They are like human pitbulls when they latch onto a wrong door. Humph!!! I'm glad they're on my side.
JANICE Peters-Rowe
5 years ago

Why Choose Us to Help You?

We Take Care of Everything
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
No Recovery = No Legal Fees
We work on a contingency-fee basis, meaning that we only get paid from a portion of your settlement or jury award. If you don't get compensation, you owe us nothing.
Decades of Experience
Your situation is stressful enough: Let us take on the deadlines, paperwork, investigation, and litigation. We'll handle every detail so you don't have to worry.
Respected by Our Peers
Judges, insurance adjusters, and fellow attorneys all speak highly of our skills, and we've earned numerous accolades, including a flawless rating from AVVO.
We Have Many Locations To Serve You
We have the experience and the skilled litigators to win your case. Contact us and speak with a real attorney who can help you.
Long Island – Nassau
Parker Waichman LLP
6 Harbor Park Drive
Port Washington, NY 11050
Long Island – Suffolk
Parker Waichman LLP
201 Old Country Road – Suite 145
Melville, NY 11747
New York
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038
Queens
Parker Waichman LLP
118-35 Queens Boulevard, Suite 400
Forest Hills, NY 11375
Brooklyn
Parker Waichman LLP
300 Cadman Plaza West
One Pierrepont Plaza, 12th Floor
Brooklyn, NY 11201
New Jersey
Parker Waichman LLP
80 Main Street, Suite 265
West Orange, NJ 07052
Florida
Parker Waichman LLP
27299 Riverview Center Boulevard
Suite 108
Bonita Springs, FL 34134
Nationwide Service
Parker Waichman LLP
59 Maiden Lane, 6th Floor
New York, NY 10038