Wiregrass Investors Sue Morgan Keegan
Investors in Wiregrass, Alabama, are suing Morgan Keegan & Co. after losing about $13 million in the RMK funds. The 100 investors thought they were buying supposedly safe-as-CDs investments. Only later did they learn - as did thousands of investors throughout the country - that the funds were backed by risky mortgage-related securities and other toxic structured financial products. When the financial crisis hit, the funds plummeted in value.
State and federal regulators filed fraud charges against Morgan Keegan and several high ranking company executives earlier this week. Among the allegations: Morgan Keegan misled investors and brokers about the risks of the funds and misrepresented their value.
One investor who lost big to Morgan Keegan is Georgia Smith. As reported April 9 by the Dothan Eagle, the retired teacher moved her money from reliable municipal bonds into other securities on the recommendation of a Morgan Keegan representative. She ended up losing her entire investment.
“They just sold us junk bonds; that was all,” Smith said in the article.
Our affiliation of lawyers is actively involved in advising individual and institutional investors in evaluating their legal options when confronted with subprime and other mortgage-related investment losses.
