Morgan Keegan’s parent company, Regions Financial Corp., scored a legal victory last week when an Alabama court dismissed a securities fraud lawsuit brought by a group of shareholders who allegedly lost money stemming from the collapse of the firm’s six RMK investment funds.
In the 6-1 opinion, the Supreme Court of Alabama ruled that the shareholders, who were individual investors, partnerships and others, couldn’t bring the suit directly against Regions, Morgan Asset Management and the funds’ manager James C. Kelsoe. Regions and its affiliated companies successfully argued that the claims in the lawsuit could only be brought as a derivative action. The ruling directed the trial court to go back and dismiss the lawsuit.
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