A recent press by the Secretary of State for the State of Mississippi announced that the SEC has published their proposed plan for fund distribution to those injured by Morgan Keegan investments.
This comes two years after the $200 million dollar settlement with Morgan Keegan and Morgan Asset Management. The settlement funds are to be used as payments to investors who were damaged by Morgan Keegan and Morgan Asset Management’s failure to “disclose risks associated with certain investments and presenting misleading marketing materials to investors”, according to the Secretary of State’s press release.
The settlement was to be paid originally in two parts, with the States involved in the suit distributing $100 million to injured investors and the SEC distributing the other $100 million. The States have already distributed their portion and have been waiting on the SEC, according to the press release.
Secretary Hosemann stated in his press release that, “by their own administrative rule, the SEC is required to have a distribution plan in place within 60 days of the Commission receiving funds. It has been two years”. After repeated demands by the Secretary of the State, three investors filed a lawsuit against the SEC to demand payment; the Attorney General demanded action from the SEC within 14 days of the demand, the press release stated.
The SEC announced the proposed distribution plan early this April; a copy of the plan can be found http://www.sec.gov/litigation/fairfundlist.htm#morganassetmgmt.
If you or someone you know has lost money as a result of a Morgan Keegan product, please contact Richard Frankowski at 205-747-1903 to discuss your potential legal remedies.