MEMPHIS, Tenn. (AP) - A class action lawsuit has been filed against Memphis-based Morgan Keegan alleging that investors in four mutual funds were not informed about risky investments that resulted in $1 billion in losses.
The lawsuit claiming violation of federal securities laws was filed in U.S. District Court in Memphis by Labaton Sucharow LLP on Wednesday.
The states of Mississippi, Alabama, Kentucky and South Carolina along with the Securities and Exchange Commission and the Financial Industry Regulatory Authority have previously announced administrative actions against Morgan Keegan, which is owned by Birmingham, Ala.-based Regions Financial Corp.
Kathy Ridley, a spokeswoman for Morgan Keegan, said the filing is similar to other class action lawsuits that are still pending in court and there are no new allegations.
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