Morgan Keegan Ordered To Pay Bond Investors $9M

Law360, New York (October 7, 2010, 3:44 PM EDT) -- A Financial Industry Regulatory Authority arbitration panel has awarded about $9.2 million to a group of investors who claimed Morgan Keegan & Co. Inc. fraudulently recommended they buy "highly risky" bond funds backed by illiquid mortgage-backed loans and collateralized debt obligations.

The award, dated Monday, included more than $1.1 million in legal fees for attorneys representing more than 30 named claimants.

The panel also denied the the Memphis, Tenn.-based brokerage's counterclaims of fraud and breach of contract against former broker and claimant Russell W. Stein....
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