BOCA RATON, Fla., March 31, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) announced today that it filed a lawsuit against Morgan Keegan and Regions Financial Corp., with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution, seeking damages in excess of $1.3 million. The Statement of Claim alleges that the Claimants lost money in four closed-end funds, RMK Multi-Sector High Income Fund (NYSE:RHY) RMK High Income Fund (NYSE:RMH), RMK Advantage Income Fund (NYSE:RMA), and RMK Strategic Income Fund (NYSE:RSF), as a direct result of Morgan Keegan's false and misleading statements about the Funds' risk tolerance and asset allocation, as well as the lack of diversification. Further, the claim alleges that Morgan Keegan misrepresented and omitted material information in the Funds' registration statements and prospectuses concerning the nature and extent of the Funds' investments in collateralized debt obligations ("CDOs"), and the funds' resulting exposure to the subprime mortgage market.
"This claim is just one of many that our firm has filed against Morgan Keegan and Regions Financial, on behalf of investors in the Morgan Keegan Bond Funds," said Steven D. Toskes, a partner at Klayman & Toskes. Klayman & Toskes continues to receive calls and file arbitration claims for investors from across the country. The lawsuits involve losses in the following Morgan Keegan Bond Funds:
Y-T-D Return
Ticker Bond Fund as of 12/31/07
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RMH RMK High Income Fund -65.53%
RHY RMK Multi-Sector High Income Fund -65.09%
RMA RMK Advantage Income Fund -66.68%
RSF RMK Strategic Income Fund -66.92%
RHICX Regions MK Select High Income-C -59.95%
MKHIX Regions MK Select High Income-A -59.74%
RHIIX Regions MK Select High Income-I -59.64%
RIBCX Regions MK Select Intermediate Bond Fund-C -50.54%
MKIBX Regions MK Select Intermediate Bond Fund-A -50.30%
RIBIX Regions MK Select Intermediate Bond Fund-I -50.07%
Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced losses of $50,000 or more in the Morgan Keegan Bond Funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim may obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit.
If you lost $50,000 or more in the Morgan Keegan Bond Funds, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, to explore your legal options. You may also visit us on the web at http://www.nasd-law.com. Klayman & Toskes, an experienced and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.