BIRMINGHAM, Ala., May 22, 2008 (PRIME NEWSWIRE) -- The securities law firm of Burke, Harvey & Frankowski, LLC (www.bhflegal.com) announced today that it filed another arbitration claim against Morgan Keegan on behalf of an investor that lost over four million dollars. The arbitration Statement of Claim, filed with the FINRA (Financial Industry Regulatory Authority) Office of Dispute Resolution, alleges damages relating to the sale of unsuitable bond funds, including the RMK High Income Fund (RMH), the RMK Multi-Sector High Income Fund (RHY), the RMK Advantage Income Fund (RMA), the RMK Strategic Income Fund (RSF), and the Regions MK Select High Income Fund (MKHIX). Specifically, 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. Further, the claim alleges damages as a result of Morgan Keegan's false and misleading statements about the Funds' safety and ability to generate income.
According to Richard Frankowski, a partner at Burke, Harvey & Frankowski, LLC, "Arbitration may be a much more efficient process for litigating claims against Morgan Keegan. Class actions often take years to conclude and frequently result in settlements that pay investors a few cents on the dollar."
As of December, 2007, all of the Morgan Keegan Bond Funds lost at least 50% of their value. Fund values have continued to decline throughout 2008. Burke, Harvey & Frankowski, LLC provides free consultations for investors that sustained losses of $50,000 or more in any of the following 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%
Morgan Keegan Bond Fund investors can get more information by visiting bhflegal.com or bondfundfraud.com. Investors can obtain a free legal consultation by contacting Richard Frankowski at 1-888-930-9091.
No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.