Morgan Keegan Beats Back Investor Suit Over ARS Risks

Law360, New York (October 13, 2011, 6:37 PM EDT) -- A Louisiana federal judge rejected claims Thursday that Morgan Keegan & Co. Inc. conned investors into buying auction rate securities by billing them as safe and liquid investments similar to money market funds.

In an opinion following a two-day trial in August, U.S. District Judge Carl J. Barbier said the plaintiffs had failed to link Morgan Keegan's alleged misstatements to their decision to buy $1 million worth of auction rate securities and the losses they suffered when the ARS market tanked.

"Even assuming that Morgan Keegan...
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