Law360, New York (June 28, 2011, 6:11 PM EDT) -- A federal judge in Atlanta nixed a U.S. Securities and Exchange Commission lawsuit against Morgan Keegan & Co. Inc. on Tuesday, saying the agency failed to adequately support its claim that the financial firm misled investors about the risks of auction rate securities.
"The failure to predict the market does not amount to securities fraud," U.S. District Judge William S. Duffey Jr. said.
Judge Duffey granted Tennessee-based Morgan Keegan summary judgment on the agency's claims that the defendant, a wholly owned subsidiary of Regions Financial Corp.,...
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