Former Los Angeles Lakers player Horace Grant scored a big win on Sept. 11 when the Financial Industry Regulatory Authority (FINRA) ordered Regions Financial Corp.’s Morgan Keegan & Co. to pay Grant $1.46 million for losses he incurred as an investor in the brokerage’s risky bond funds.
The $1.46 million award is the largest arbitration loss to date for Morgan Keegan, which has hundreds of lawsuits still pending in connection to a group of mutual funds that collapsed during the height of the financial crisis. The funds in question include Regions Morgan Keegan Multi-Sector Income Fund, Regions Morgan Keegan High Income Fund, Regions Morgan Keegan Strategic Income Fund, and Regions Morgan Keegan Advantage Income Fund.
According to Grant’s complaint, Morgan Keegan failed to disclose the true risks of his investments, which were underpinned by mortgage-related holdings.
Grant’s win comes on the heels of several other recent victories by investors with claims against Morgan Keegan for losses in the bond funds. At least seven of the awards have cost Morgan Keegan about $3 million. One investor won $950,000 and two other investors were awarded $267,711 and $187,215, according to FINRA records.
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