BOCA RATON, Fla., Sept. 19, 2008 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) announced today 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 seeks damages for losses sustained 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). According to the Statement of Claim, the Claimants lost money in these 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 Claimants.
Klayman & Toskes continues to file arbitration claims on behalf of aggrieved investors of the Regions Morgan Keegan Funds from across the country. After the monthly dividend for the closed-end funds was cut to about $0.01 per share, Klayman & Toskes has seen the number of inquires regarding securities arbitration claims against Morgan Keegan and Regions Financial Corp. increase substantially.
Following the cut in dividend and the recent Shareholder Conference Call with Hyperion Brookfield, many Regions Morgan Keegan Bond Fund investors are left searching for answers and weighing all of their options. According to Jahan K. Manasseh, an attorney at Klayman & Toskes, "Our firm has been filing arbitration claims against Morgan Keegan and Regions Financial since the beginning of 2008, yet we feel that we have only seen the tip of the iceberg. Many investors are just now learning that they do not have to wait for class action to take its course, but instead they can file an individual arbitration claim to obtain a recovery." The arbitration claims being filed by Klayman & Toskes against Morgan Keegan and Regions Financial Corp. involve losses in the following Regions Morgan Keegan 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 Regions Morgan Keegan 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 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 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.