SOURCE: Brower Piven, A Professional Corporation

May 20, 2010 15:53 ET

Brower Piven Encourages Investors With Significant Losses From Investment in the RMK Advantage Income Fund, RMK Strategic Income Fund, RMK High Income Fund and/or RMK Multi-Sector High Income Fund to Inquire About the Lead Plaintiff Position in Securities Fraud Class Action Lawsuit Before the June 28, 2010 Lead Plaintiff Deadline -- RMA, RSF, RMH, RHY

STEVENSON, MD--(Marketwire - May 20, 2010) -  Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Western District of Tennessee on behalf of all persons who purchased or otherwise acquired shares of the following closed-end mutual funds (the "Funds") between June 6, 2005 and July 14, 2009, inclusive (the "Class Period").

  • RMK Advantage Income Fund (NYSE: RMA)
  • RMK Strategic Income Fund (NYSE: RSF)
  • RMK High Income Fund (NYSE: RMH)
  • RMK Multi-Sector High Income Fund (NYSE: RHY)

No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than June 28, 2010 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You are not required to have sold your shares to seek damages or to serve as a Lead Plaintiff. You may contact Brower Piven (through hoffman@browerpiven.com or 410/415-6616) to answer any questions you may have in that regard. 

The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the Company's failure to disclose during the Class Period: (1) that the Funds' investments in poor-quality asset-backed securities ("ABS"), leveraged many times over by complex capital structures; (2) that, contrary to Defendants' representations that the securities held in the Funds were corporate bonds and preferred stocks, the Funds held concentrated holdings of low-priority tranches of ABS; and (3) that Defendants repeatedly and inappropriately compared the performance of the Funds to the Lehman Brothers Ba U.S. High-Yield Index, which contained only corporate bonds, wholly distinct from ABS held by the Funds. According to the complaint, Defendants' conduct has prompted regulatory enforcement actions or investigations by at least five state regulators, FINRA, and the SEC, and, on July 9, 2009, the SEC served Regions Financial Corp., Morgan Keegan's parent company, with a Wells Notice, which notified Regions that the SEC would commence an enforcement action.

If you have suffered a net loss for all transactions in the Funds during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410/415-6616, or at Brower Piven, A Professional Corporation, 1925 Old Valley Road, Stevenson, Maryland 21153. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.

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Contact Information

  • CONTACT:
    Charles J. Piven
    Brower Piven, A Professional Corporation
    Stevenson, Maryland
    410/415-6616
    Email Contact