Morgan Pays $68M To End Shareholder Suits Over MBS Funds

Law360, New York (October 15, 2012, 3:05 PM EDT) -- Morgan Keegan & Co. Inc. on Friday agreed in Tennessee federal court to pay $68 million to resolve a shareholder derivative action and a shareholder class action accusing the company of misleading investors about its mutual funds' risky holdings in asset-backed securities.

The $68 million in settlements end allegations that Morgan and its former parent company Regions Financial Corp., improperly invested their funds’ assets in risky securities without disclosing the extent of those holdings to shareholders.  According to the agreement, the shareholder investors will collect a...
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