BOCA RATON, Fla., Oct. 17, 2008 (GLOBE NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. (http://www.nasd-law.com) announced today that it filed two arbitration claims against Morgan Keegan and Regions Financial Corp. with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. The Claims seeks to recover damages sustained in one closed end fund, RMK Advantage Income Fund (NYSE:RMA), and three open-ended funds, RMK Select Intermediate Bond Fund, Class C (Nasdaq:RIBCX), RMK Select Intermediate Bond Fund, Class I (Nasdaq:RIBIX), and RMK Select Intermediate Bond Fund, Class A (Nasdaq:MKIBX).
According to the Claims, 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 Claims allege 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.
Pension Funds that purchased the RMK Funds through a Regions Morgan Keegan Trust Account should be aware of the deadline to elect-out of representation by the Trustee Ad Litem. Because Regions Bank served as Trustee for these Trust Accounts and is also a Defendant in the Regions Morgan Keegan Class Actions, the Probate Court appointed a Trustee Ad Litem to represent Trust Accounts of the Regions Bank Trust Department. Regions Bank Trust Department customers have until October 31, 2008 to elect out of representation by the Trustee Ad Litem.
Klayman & Toskes continues to file numerous arbitration claims on behalf of aggrieved investors of the Regions Morgan Keegan Bond Funds from across the country. 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 significant losses 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 detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally 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 are a Pension Fund trustee and/or board member for a Pension Fund that experienced significant losses 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.