Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Judge's Reversal Costs Regions $9.2MM Not Rated 0.0 Email Routing List Email & Route  Print Print
Wednesday, October 24, 2012

Judge's Reversal Costs Regions $9.2MM

News summary by MFWire's editors

Morgan Keegan is still getting hit with investor judgements stemming from the 2008 financial crisis.

Yesterday a federal court of appeals reinstated a $9.2 million judgement against Morgan Keegan over bond funds that lost value during the financial crisis, Reuters reported. The appeals court decided that a lower court was mistaken when it threw out the judgement last year over what it called "fraudulent" expert-witness testimony.

The ruling relates to testimony given by Craig McCann of Virginia-based Securities Litigation and Consulting Group. Reuters correspondent Suzanne Barlyn writes has "McCann's testimony, for years, has helped seal huge wins for investors," including judgements against Citigroup and former Lehman execs.

The appeals court ruled that McCann's staff had made a calculation error in preparing its testimony, and that there was no evidence of fraud.

Morgan Keegan has been hit with over 1,000 arbitration cases relating to a group of bond funds that lost 80 percent of their value during the financial crisis. Morgan Keegan agreed to pay a $200 million SEC fine over the funds, but has been "aggressively" fighting investors' claims in court, according to Reuters.

Barlyn writes that the ruling could "undermine Morgan Keegan's position in other securities arbitration rulings it is trying to overturn." And she quotes a Beverly Hills-based securities arbitration lawyer who hopes the judgement scares Morgan Keegan straight:

"This sends a clear message to Morgan Keegan to stop engaging in bad behavior in appealing investor wins. It's a direct message to start playing by the rules," he said.

The bond fund judgements are the legal responsibility of Morgan Keegan's former parent company Regions Financial Corp

Edited by: Chris Cumming


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use