The United States Court of Appeals for the Eleventh Circuit reinstated the SEC’s civil securities fraud action against Morgan Keegan & Co. Inc., according to a article. This reversed the district court’s dismissal of the SEC’s action arising from Morgan Keegan’s sales of Auction Rate Securities (ARS).

The Eleventh Circuit found that the alleged oral misstatements of the brokers at Morgan Keegan could have been material, according to the article. These oral misstatements could have negated the accurate written disclosures.

The decision in Morgan Keegan follows The United States Supreme Court decision in Matrixx Initiatives Inc. v. Siracusano, which  reaffirmed that it is a fact-specific inquiry when determining if an alleged misstatement or omission is indeed material.

If you or someone you know lost money in the RMK bond funds or in any Morgan Keegan investment, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.