The lawsuit seeks to represent all persons and entities who purchased shares of RMA, RSF and RMH during the period between December 6, 2004 and December 6, 2007.
The complaint charges the funds’ registrants, the funds’ administrator, Morgan Keegan & Company, the funds’ adviser, Morgan Asset Management, Regions Financial and certain Morgan Keegan’s officers and/or directors with violations of the Securities Act of 1933. The complaint alleges that the funds and the other defendants misrepresented or failed to disclose material facts relating to the nature of the risk being assumed by an investment in the funds, the illiquidity of certain securities in which the funds invested.
The complaint also alleges the extent to which the funds’ portfolios contained securities that were illiquid or exhibited the characteristics of illiquid securities so that they were vulnerable to becoming unsalable at the prices at which they were being carried on the funds’ records and also the extent to which the funds’ portfolios were subject to fair value procedures. The extent to which the values of such securities and consequently, the net asset values of the funds, were based on estimates of value and the uncertainty inherent in such estimated values.
