doing the most to shape the law
SAN FRANCISCO (PRWEB) January 9, 2008
The Funds and their respective symbols are as follows:
Regions Morgan Keegan Select Intermediate Bond Fund (MKIBX; RIBCX; and RIBIX)
Regions Morgan Keegan Select High Income Fund (MKHIX; RHICX; RHIIX)
Regions Morgan Keegan Select Short Term Bond Fund (MSBIX; RSTCX; and MSTBX)
RMK Multi-Sector High Income Fund (RHY)
If you purchased shares of the Funds pursuant and/or traceable to the Funds' registration statement and prospectuses since December 6, 2004, you may move the Court for appointment as lead plaintiff by no later than February 4, 2008. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in this action.
If you wish to discuss the actions or have any questions concerning this notice or your rights or interests, please contact Sharon M. Lee (firstname.lastname@example.org) or Michael Miarmi (email@example.com) of Lieff Cabraser via email or toll free at (800) 541-7359.
Background on Morgan Keegan & Company Litigation
The actions, pending in the United States District Court for the Western District of Tennessee, were brought against Regions Financial Corporation (NYSE:RF); Morgan Keegan & Company, Inc., the Funds' administrator; Morgan Asset Management, Inc., the Funds' adviser; certain Morgan Keegan officers and/or directors; PriceWaterhouseCoopers LLP, the Funds' outside auditor; among other defendants, for violations of the Securities Act of 1933 (the "Securities Act").
The complaints allege that defendants misrepresented and omitted material information in the Funds' registration statements and prospectuses concerning the nature and extent of the Funds' investments in collateralized debt obligations and the Funds' resulting exposure to the subprime mortgage market. In addition, the complaints allege that defendants failed to disclose the extent to which the Funds' securities portfolio were illiquid and therefore subject to fair value procedures. Defendants allegedly failed to properly value the securities portfolio and therefore caused the Funds' published Net Asset Values to be materially misstated.
In August 2007, the Funds disclosed that the deteriorating conditions in the subprime and housing markets had adversely impacted the liquidity of their securities portfolio and that the securities had been difficult to value. On October 3, 2007, the Funds revealed for the first time that, as of June 30, 2006 and June 30, 2007, a significant portion of their respective investments were in fair valued securities. Specifically, it was disclosed that the approximately 50 percent of the securities held by each of the Regions Morgan Keegan Select Intermediate Bond Fund and the Regions Morgan Keegan Select High Income Fund were fair valued as of June 30, 2006 and June 30, 2007. On November 7, 2007, James Kelsoe, the Funds' portfolio manager, acknowledged in a letter to shareholders that many of the Funds' investments were in "structured finance" collateralized by mortgage-related securities and that the value of the investments had been adversely impacted by the subprime mortgage crisis.
In reaction to this news, the price of the Funds' shares declined significantly. On November 8, 2007, the Regions Morgan Keegan High Income Fund Class A shares closed at $4.53 per share, representing a 50.8 percent decline from its closing price on July 2, 2007. On the same day, the Regions Morgan Keegan Intermediate Bond Fund Class A shares closed at $5.88 per share, representing a 37.9 percent decline from its closing price on July 2, 2007. In addition, the Regions Morgan Keegan Short Term Bond Fund Class A shares declined 11.6 percent from its closing price on July 2, 2007 to close at $8.84 per share on November 8, 2007. Similarly, on November 8, 2007, the RMK Multi-Sector High Income Fund closed at $5.41 per share, representing a 63 percent decline from its closing price on July 2, 2007.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. In the 2007 edition of its annual list of the plaintiffs' law firms "doing the most to shape the law," The National Law Journal selected Lieff Cabraser as one of the nation's top plaintiffs' firms. Lieff Cabraser was also a member of The National Law Journal's Plaintiffs' "Hot List" from 2003 through 2006. The firm is one of only two plaintiffs' law firms in the nation to receive this award the last five years.
For more information about Lieff Cabraser and the firm's representation of investors, please visit http://www.lieffcabrasersecurities.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.