Case Study: SEC V. Morgan Keegan

Law360, New York (May 18, 2012, 12:28 PM EDT) -- On May 2, 2012, the United States Court of Appeals for the Eleventh Circuit reinstated the U.S. Securities and Exchange Commission’s civil securities fraud action against Morgan Keegan & Co. Inc., reversing the district court’s dismissal of the SEC’s action arising from Morgan Keegan’s sales of Auction Rate Securities (ARS) in late 2007 and early 2008.

The Eleventh Circuit found that oral misstatements Morgan Keegan brokers allegedly made could have been material, and that these misstatements could have negated the available accurate written disclosures, notwithstanding that...
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