James A. Dunlap Jr. & Associates LLC Announces Regions Financial Corp.'s Morgan Keegan Hit with Damage Award for Misrepresenting Bad Bonds

On April 9, 2009, a Financial Industry Regulatory Authority (FINRA) arbitration panel awarded William F. Stackpole damages based upon his claims against Regions Financial Corp.'s (RF) Memphis-based Morgan Keegan & Company, Inc. and its family of high-yield bond funds RHY, RMA, RMH, RSF, MKHIX, MKIBX, RHICX, RHIIX, RIBCX, and RIBIX.

According to the Statements of Claim, the Claimant sustained losses in the Morgan Keegan Funds caused by Morgan Keegan's false and misleading statements about the Fund's risk tolerance, asset allocation, lack of diversification, and lack of suitability for the Claimant. The Claims also allege that Morgan Keegan violated Rule 10b-5 of the Securities Exchange Act of 1934, as well as applicable state securities laws.

Firm principal Jim Dunlap commented on the award saying, "Despite the panel finding this was an unsolicited trade, we proved that that risks of the fund were not highlighted and we proved that the prospectus and other materials generally gave an overall impression of safety that were contrary to substantial risks inherent in the funds. We are gratified with the result. This was a small claim at under $10,000.00 but the impact of proving my client's allegations of wrongdoing against Morgan Keegan is enormous." The panel awarded damages and ordered Morgan Keegan to pay Claimant one-half of his forum costs.

James A. Dunlap Jr. & Associates LLC and affiliated attorneys have filed arbitration claims on behalf of other investors in the Regions Morgan Keegan Bond Funds. The arbitration claims involve losses in the Morgan Keegan Bond Funds which have recently changed names as follows:

 Formerly RMK High Income Fund -- RMH/Now Helios High Income
   Fund -- HIH
 Formerly RMK Multi-Sector High Income Fund---RHY/Now Helios Multi-
   Sector High Income Fund --- HMH
 Formerly RMK Advantage Income Fund --- RMA/Now Helios Advantage
   Income Fund ---- HAV
 Formerly RMK Strategic Income Fund --- RSF/Now Helios Strategic
   Income Fund ---- HSA
 Formerly Regions MK Select High Income-C --- RHICX
 Formerly Regions MK Select High Income-A --- MKHIX/Now Helios Select
   High Income Fund --- HIFAX
 Formerly RHIIX---Regions MK Select High Income-I
 Formerly RIBCX---Regions MK Select Intermediate Bond Fund-C
 Formerly Regions MK Select Intermediate Bond Fund --- MKIBX/Now
   Helios Select Intermediate Income Fund --- HSIBX
 Formerly RIBIX Regions MK Select Intermediate Bond Fund-I

Specific information about the Morgan Keegan fund claims can be reviewed at http://www.jamesdunlaplaw.com/cms.php?id=36.

If you lost $100,000 or more in the Morgan Keegan Bond Funds, please contact James A. Dunlap Jr., Esquire, of James A. Dunlap Jr. & Associates LLC at 404-354-2363, for a free consultation. You may visit the firm's web site at http://www.jamesdunlaplaw.com.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: James A. Dunlap Jr. & Associates LLC

James A. Dunlap Jr. & Associates LLC
          Jim Dunlap, Principal
          404-354-2363
          Fax: 404-745-0195
          jim@jamesdunlaplaw.com 
          30 Allen Plaza, Suite 700
          30 Ivan Allen Jr. Blvd.
          Atlanta, Georgia 30308

Related terms: bond, bonds, diversification, family, trade, web, yield