Morgan Keegan Class Action Lawsuit

Memphis, TNInvestors know that when they invest their money they face a certain degree of risk. They recognize that there is a possibility that they will lose money but they accept that degree of risk and still invest, believing that the investment will work out and they will make money from it. But what if the company they invest with has not been upfront about the degree of risk associated with the investment? This is exactly what investors allege happened when they invested in certain Morgan Keegan funds.

To many investors, a degree of risk is acceptable—if they know upfront what the degree of risk will be. They can prepare themselves for possible losses or gains. However, people who invested in some Morgan Keegan funds claim that the company either misrepresented or did not disclose facts about those funds, including breaches and conditions in the funds' portfolios; the concentration of single industry investments, exceeding the fund's restrictions; and the illiquidity of securities that the funds were invested in.

The investors are now investigating a class action lawsuit against Morgan Keegan. They argue that Morgan Keegan's funds suffered ridiculously heavy losses—heavier than other, similar funds. In fact, investors argue that funds lost between 50 and 60 percent of their value. They allege that, had they known the truth about the funds and their level of risk, they would never have invested in those funds.

Some investors have already filed lawsuits against Morgan Keegan. According to The Tennessean, four class action lawsuits have already been filed. Plaintiffs claim that Morgan Keegan executives did not tell them that the majority of their assets were invested in "sup-prime, illiquid and untested investment structures."

Morgan Keegan now faces numerous lawsuits, including a $10 million lawsuit filed by CountryMark Cooperative. CountryMark alleges that Morgan Keegan violated federal and state securities laws and ignored CountryMark's request for only safe, short-term corporate commercial paper investments. Furthermore, the company claims that within a week of the investment, the note was given a "junk" status and the investments are now worthless.

According to the Indianapolis Star, the Morgan Keegan case is similar to the Firstmark case that occurred 20 years ago. In that situation, hundreds of investors, most of them elderly, lost $57 million in retirement savings. Through lawsuits they were able to reclaim some of their lost money.

Investors who acquired shares in Morgan Keegan bond mutual funds between December 2004 and October 2007 may be eligible to join a class action lawsuit to reclaim their lost money.