NEW YORK, June 16, 2008 (PRIME NEWSWIRE) -- The Law Firm of Napoli Bern Ripka, LLP (NBR) (www.napolibern.com) announced today that it has filed a lawsuit against Morgan Keegan and Regions Financial Corp. with the Financial Industry Regulatory Authority's (FINRA) Office of Dispute Resolution.
The Statement of Claim alleges that the Claimants, a widow and her two children, lost some $280,000.00 in the value of their investments in the 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 information about the Funds' risk tolerance and asset allocation, as well as the lack of diversification. The claim also 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.
The filing of the arbitration claim comes on the heels of recent news that the Securities and Exchange Commission has launched an investigation of the Morgan Keegan Bond Funds. In recent days, Regions Financial Corp. announced in a regulatory filing that it "has received requests for information from the SEC Staff regarding the matters subject to the litigation." At this point in time, it is unclear how long the SEC's investigation will take.
If you lost a significant amount of money or value in the Morgan Keegan Bond Funds, please contact Paul J. Napoli, of Napoli Bern Ripka, LLP (212-267-3700) or Jude Avelino of the Avelino Law Firm (212-732-9500), to explore your legal options.
You may also visit us on the web at www.napolibern.com or www.avelinolaw.com. Napoli Bern Ripka, LLP is a nationally recognized plaintiff's litigation law firm, continuing its representation of investors in securities arbitration and litigation matters against major Wall Street brokerage firms.
Ticker Bond Fund YTD Return as of 12-31-07 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%