Morgan Keegan Wins High-Yield Fund Arbitration and Receives Award of Fees and Costs
MEMPHIS, Tenn., Nov. 5 /PRNewswire/ -- A Financial Institution Regulatory Authority (FINRA) panel has denied an $8.2 million claim against Morgan Keegan & Company, Inc., relating to the claimants' investment in the Regions Morgan Keegan Select High Income Fund, the RMK Advantage Income Fund and the RMK Strategic Income Fund, whose shares fell sharply in value beginning in 2007 with the onset of the Credit Crisis. The panel of three arbitrators also unanimously held the claimants liable for some $200,000 in Morgan Keegan's fees, expenses and forum fees.
William Strong and several other related entities and individuals sued in January 2008. The case went to hearing in October 2009. After hearing evidence for seven days, the arbitrators denied all of the claims against Morgan Keegan, finding that none of the 18 claimants was entitled to any recovery from Morgan Keegan. Morgan Keegan, however, was awarded a recovery of $157,000 in attorneys fees along with $20,000 in expert witness fees. The FINRA hearing fees - $22,950 - were also fully assessed against the claimants.
Michael A. Brady, a member of Bass, Berry & Sims PLC who was one of Morgan Keegan's lawyers in the case, commented that the attorneys fee award in favor of Morgan Keegan sent a strong signal. "The attorneys fee award against these claimants is an obvious indication that the arbitrators believed the claims were unwarranted and that Morgan Keegan deserved to be reimbursed for at least some of the costs incurred in defending the case."
The case is styled: William A. Strong, et al. v. Morgan Keegan & Company, Inc., FINRA No. 08-00027.
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