Cobb et al v Morgan Keegan - $1,100,000 (MKHIX, RMH, RMA, RSF, RHY) Award
In February 2010, a FINRA arbitration panel in Birmingham, AL ordered Morgan Keegan to pay $1,100,000 in damages. 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 panel found Morgan Keegan liable for "misrepresentation and failure to disclose the true nature of the RMK funds." The claims related to Claimants' investments in the RMK Select High Income Fund (MKHIX), RMK High Income Fund (RMH), RMK Advantage Income Fund (RMA), RMK Strategic Income Fund (RSF) and RMK Multi-Sector High Income Fund (RHY). Dr. McCann testified on behalf of the Claimants.