Smythe et al v Morgan Keegan - $1,000,000 (MKIBX, RSF, RMA, RHY) Award
In November 2009, a FINRA arbitration panel in Memphis, TN ordered Morgan Keegan to pay $803,000 in damages including $20,000 in expert witness fees and pre-judgment interest at the rate of 6% per annum. The panel also assessed $195,160 in attorneys' fees. The award was made after a hearing wherein the Claimants alleged Respondents breached contractual and fiduciary duties, failed to suitably invest Claimants' accounts, and failed to supervise Claimants' accounts. The claims related to Claimants' investments in the RMK Select Intermediate Bond Fund (MKIBX), RMK Strategic Income Fund (RSF), RMK Advantage Income Fund (RMA) and RMK Multi-Sector High Income Fund (RHY). Dr. McCann testified on behalf of the Claimants.