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Investors lose $1.9 million bond fund case against Morgan Keegan

Nov 08 2012 Suzanne Barlyn, Reuters

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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