BOCA RATON, Fla., Sept. 5, 2008 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) announced that it filed another arbitration claim against Morgan Keegan and Regions Financial Corp., with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. The lawsuit was filed for losses sustained in four RMK 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).
According to the Statement of Claim, the Claimant lost money in the RMK Bond Funds due to 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 violated Rule 10b-5 of the Securities Exchange Act of 1934, as well as the applicable state securities act, as a result of the firm's misrepresentations and omissions in connection with its sale of the securities to the Claimant.
Klayman & Toskes continues to file numerous arbitration claims on behalf of aggrieved investors of the RMK Bond Funds from across the country. After the monthly dividend for the closed end funds was cut to about $0.01 per share, Klayman & Toskes expects arbitration claims against Morgan Keegan and Regions Financial Corp. to increase substantially. The arbitration claims involve losses in the following Morgan Keegan Bond Funds:
Ticker Bond Fund RMH RMK High Income Fund RHY RMK Multi-Sector High Income Fund RMA RMK Advantage Income Fund RSF RMK Strategic Income Fund RHICX Regions MK Select High Income-C MKHIX Regions MK Select High Income-A RHIIX Regions MK Select High Income-I RIBCX Regions MK Select Intermediate Bond Fund-C MKIBX Regions MK Select Intermediate Bond Fund-A RIBIX Regions MK Select Intermediate Bond Fund-I
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. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf
The attorneys at the Law Firm of Klayman & Toskes are dedicated to aggressively pursuing claims on behalf of investors who have suffered losses in the Regions Morgan Keegan Bond Funds, and as a result of the credit crisis and subprime fallout overall. Klayman & Toskes, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against Wall Street brokerage firms.
If you lost $50,000 or more in the Regions Morgan Keegan Bond Funds and wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.