We represented Morgan Keegan & Co. in two cases brought by investors in certain Morgan Keegan Funds stemming from investment fund company losses in the wake of the global credit crisis. The United States Court of Appeals for the Sixth Circuit, in a case of first impression for it, affirmed the district court dismissal, ruling that the plaintiffs were barred by the applicable statutes of repose (three and five years under the Securities Act of 1933 and the Securities Exchange Act of 1934, respectively). The decision is important because it underscores a circuit split over the issue of whether a securities plaintiff can rely on a pending class action to toll a repose period. The cases are Stein v. Regions Morgan Keegan Select High Income Fund Inc. and Starnes v. Regions Morgan Keegan Select High Income Fund Inc., case numbers 15-5903 and 15-5905, in the U.S. Court of Appeals for the Sixth Circuit.
The case was covered by various media outlets, including:
Morgan Keegan (formerly NYSE: MOR) was a national broker-dealer institution. In April 2012, Morgan Keegan & Co was acquired by Raymond James Financial.