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Ex-NFL star scores $950K arbitration against Morgan Keegan
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(April 23, 2009 - Thursday) - http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090413/REG/904139983/1094/INDaily01
The firm has paid out a cumulative $1.6 millions in recent claims
By Bruce Kelly
April 13, 2009, 2:27 PM EST
Morgan Keegan has been stung in another arbitration case involving its bond funds, this time losing a $950,000 claim to an ex-NFL Pro Bowl star with the Kansas City Chiefs.
Jerome Woods, who played defensive back with the Chiefs from 1996 to 2005, is the sixth straight investor to win a claim against Morgan Keegan & Co. Inc. of Memphis, which is a subsidiary of Birmingham, Ala.-based Regions Financial Corp.
In his claim, Mr. Woods alleged fraud, negligence and a breach of fiduciary duty by Morgan Keegan, who is fighting hundreds of claims by investors over bond funds that crashed in 2007.
Mr. Woods claim involved investments in four funds: the RMK High-Income Fund, the RMK Advantage Fund, the RMK Strategic Income Fund and the RMK Multi-Sector High Income Fund.
As is typical, the three arbitrators gave no explanation for their decision.
Investors have steadily reeled off wins against Morgan Keegan, with arbitrators awarding investors more than $1.6 million over the past two months, including Mr. Woods’ claim.
Mr. Woods is not the only investor from the world of sports who has recently won an arbitration claim against Morgan Keegan.
Sportscaster and former baseball player Tim McCarver won $100,000 in February after claiming that Morgan Keegan was negligent.
A spokesman from Morgan Keegan did not return a call for comment at press time.
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