by The Compliance Exchange on September 14, 2012
Morgan Keegan & Co. Inc. won its second reported battle of the week after a group of investors lost a $7.6 million arbitration case against the Memphis-based firm.
Reuters reports the case was filed in the names of several family trusts and individual retirement accounts who claimed the firm defrauded them in their purchase of losing bond funds. But one of the three arbitrators objected to the ruling and signed a written dissent, opening the door for a court to possibly, but not probably, throw out the ruling.
The case originally was filed in 2010. The FINRA panel ruled on it in Las Vegas, according to the report.
The same funds were the subject of a $200 million Securities and Exchange Commission fine against Morgan Keegan, now Raymond James Morgan Keeegan, in 2011.
Read the full story at Biz Journals.