Morgan Keegan & Co has prevailed against a group of investors who filed an arbitration claim against the brokerage seeking more than $1.9 million in damages for losses tied to a series of troubled bond funds.
The investors, which include two trusts and a family limited partnership, filed the claim against Morgan Keegan in 2010. They alleged gross negligence, misrepresentation and that the Memphis-based brokerage sold unsuitable investments, among other things, according to a securities arbitration ruling. They also sought punitive damages.
Morgan Keegan is now a unit of Raymond James Financial Corp.
A Financial Industry Regulatory Authority arbitration panel in Boca Raton, Florida, denied the investors' claim, according a ruling dated Monday. The arbitrators, as is typical, did not explain the reasons for their decision.
The Morgan Keegan funds at issue in the case were among a group that dropped as much as 80 percent in 2008. Morgan Keegan agreed to pay a $200
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