BOCA RATON, Fla., Feb. 28, 2008 (PRIME NEWSWIRE) -- The Securities Law Firm of Klayman & Toskes, P.A. ("K&T") (http://www.nasd-law.com) announced today that it filed a lawsuit against Morgan Keegan and Regions Financial Corp., with the Financial Industry Regulatory Authority's ("FINRA") Office of Dispute Resolution. The claim is seeking damages of $170,000. The Statement of Claim alleges that the Claimants lost money 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. Further, 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.
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. On Wednesday, 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.
The securities arbitration lawsuits being filed by Klayman & Toskes on behalf of investors involve losses in the following Morgan Keegan Bond Funds:
Ticker Bond Fund Y-T-D 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%
If you lost $50,000 or more in the Morgan Keegan Bond Funds, please contact Lawrence L. Klayman, Esquire or Steven D. Toskes, Esquire of Klayman & Toskes, P.A., at 888-997-9956, to explore your legal options. You may also visit us on the web at http://www.nasd-law.com. Klayman & Toskes, an experienced and nationally recognized securities litigation law firm, continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.