SOURCE: Klayman & Toskes

October 17, 2008 13:35 ET

Notice From the Securities Law Firm of Klayman & Toskes to Regions Bank Trust Department Customers Who Purchased Morgan Keegan Bond Funds: Deadline for Electing Out of Representation Is October 31, 2008

BOCA RATON, FL--(Marketwire - October 17, 2008) - The Securities Law Firm of Klayman & Toskes, P.A., www.nasd-law.com, announced today that an action in Probate Court, Case No. 200853, has been filed relating to the Regions Morgan Keegan Class Action Litigation. Several Trust Accounts of the Regions Bank Trust Department purchased shares of the following RMK Bond Funds, including: RMK Multi-Sector High Income Fund (NYSE: RHY), RMK High Income Fund (NYSE: RMH), RMK Advantage Income Fund (NYSE: RMA), RMK Strategic Income Fund (NYSE: RSF), RMK Select High Income, Class A (MKHIX), RMK Select High Income, Class C (RHICX), RMK Select High Income, Class I (RHIIX), RMK Select Intermediate Bond Fund, Class A (MKIBX), RMK Select Intermediate Bond Fund, Class C (RIBCX), RMK Select Intermediate Bond Fund, Class I (RIBIX), RMK Select Short Term Bond Fund, Class A (MSBIX), RMK Select Short Term Bond Fund, Class C (RSTCX), and RMK Select Short Term Bond Fund, Class I (MSTBX). As Regions Bank served as Trustee for these Trust Accounts and is also a Defendant in the Regions Morgan Keegan Class Actions, the Probate Court has appointed a Trustee Ad Litem to represent Trust Accounts of the Regions Bank Trust Department. Regions Bank Trust Department customers have until October 31, 2008 to elect out of representation by the Trustee Ad Litem in the Class Actions.

According to the Probate Court's Order, the Court appointed the Trustee Ad Litem "to represent the interests of and to act as temporary special fiduciary for the Trust Accounts... for the limited and specific purposes of monitoring, evaluating and pursuing, including determinations of whether to participate in or opt out of the Class Actions." However, the Securities Law Firm of Klayman & Toskes has already made a determination that Regions Trust Account holders should opt out of the Regions Morgan Keegan Class Actions and file an individual securities arbitration claim, if you have sustained losses of over $100,000 in the Regions Morgan Keegan Funds. Additionally, we believe that the Regions Morgan Keegan Funds were mismanaged by James C. Kelsoe, which caused them to be exposed to an extraordinary amount of risk. Klayman & Toskes, whose sole practice is securities arbitration and litigation, represents hundreds of investors, including pension plans, which have substantial losses in the Regions Morgan Keegan Funds.

Klayman & Toskes reminds investors of the benefits of filing an individual arbitration claim, as opposed to participating in a class action lawsuit. By participating in a class action lawsuit, an investor will most likely recover only pennies on the dollar. However, if one has experienced significant losses in the Regions Morgan Keegan Funds, it may be more beneficial for them to file an individual securities arbitration claim. In 2003, Klayman & Toskes conducted a detailed study of securities arbitration versus class action. The study concluded that investors who file a securities arbitration claim traditionally obtain an overall higher rate of recovery as opposed to participating in a class action lawsuit. To view the full results of the comparison, please visit our web-site: http://www.nasd-law.com/documents/classvr.pdf

If you experienced significant losses in the Regions Morgan Keegan Funds and wish to discuss your legal options at no obligation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956, or visit us on the web at http://www.nasd-law.com.

Contact Information

  • Contact:
    Steven D. Toskes, Esquire
    Jahan K. Manasseh, Esquire
    Klayman & Toskes, P.A.
    888-997-9956
    http://www.nasd-law.com.